FASB Signals Another Delay on Pooling-of-Interests Ban
American Banker (11/03/00) Vol. 13, No. 7 p.4; Garver, Rob

The delay of the Financial Accounting Standards Board's (FASB) expected ban on the use of pooling-of-interest accounting for mergers will most likely be extended, according to board member Michael Crooch. Crooch, speaking at an AICPA conference in Washington, D.C., said the FASB is currently looking into alternatives to accounting for goodwill. He said, "We've already pushed the effective date back to March, and quite frankly, it could get pushed back further than that." The FASB reportedly favors the use of purchase accounting for mergers, which depletes earnings by forcing the acquiring company to book goodwill as an asset and then amortize goodwill over a number of years. With the pooling method, goodwill does not have to be accounted for.

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