The approach in which the merger partners merely sum the volume of their assets,liabilities,and equity in the amounts recorded just before their merger takes place is known as the:

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Quizplus · Accepted Answer

The approach described in the question (where the merger partners merely sum the volume of their assets, liabilities, and equity) is known as the pooling of interests method. This method is no longer allowed under current accounting regulations, but was popular in the past. The purchase accounting method is the most commonly used approach today, while the merger accounting and pooling of equity methods are not recognized. The pooling of accounting method is not a valid term.

The Approach in Which the Merger Partners Merely Sum the Volume