when use pooling method, does both Asset and liability higher at historical cost ? so the equity is lower? Thanks.作者: eoin 时间: 2011-7-11 19:42
yes, the two firms are combined as if they were always one; combined using historical book values. No write up to fair val. Also called "uniting-of-interests" method for obvious reasons.作者: comp_sci_kid 时间: 2011-7-11 19:42
