FASB Reconfirms Plans to Eliminate Pooling-of-Interests Method of Accounting.

• Position: Financial Accounting Standards Board - Brief Article

In continuing its re-deliberations of the Sept. 1999 proposed statement, Business Combinations and Intangible Assets, the Financial Accounting Standards Board has tentatively decided to eliminate the pooling-of-interests method of accounting for business combinations. All business combinations would be accounted for under a single method -- the purchase method. The pooling method would be eliminated following issuance of a final statement. The Board voted unanimously in favor of this decision. As part of its proposal on business combinations, the FASB made a tentative decision in Dec. 2000 relating to accounting for purchased goodwill that would require a non-amortization approach. Under that approach, goodwill would not be amortized against earnings. Instead, it would be reviewed for impairment, that is, written down and expensed against earnings only in the periods in which the recorded value of...