LPoulin133

Historically (prior to June 2001), two accounting methods were used for business combinations: 1) pooling interests method 2) purchase method.
Over the last few years, the pooling method has been eliminated from US GAAP and IFRS. Although, as analysts, we must still be aware of the pooling method as many companies accounted for acquisitions under the pooling method.
Now, we have the acquisition method. Both US GAAP and IFRS require that the acquirer measure the identifiable assets and liabilities of the acquiree at FAIR VALUE as of the date of the acquisition.
I hope this clears things up.