One of the problems with pooling-of-interests accounting is that the true cost of an acquisition is not reflected in the balance sheet of the acquirer.

Question

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Pooling-of-interests accounting combines the book values of the two companies, which means that the actual price paid for the acquisition is not reflected in the balance sheet. This can hide the true cost of the acquisition and make it difficult for investors to assess the financial impact on the acquirer.

One of the Problems with Pooling-Of-Interests Accounting Is That the True