OPINIONS OF THE ACCOUNTING PRINCIPLES BOARD
AUGUST 1970
16
Business Combinations
CONTENTS Paragraph
Numbers
Summary 1-8
Problem 1-3
Scope and Effect of Opinion 4-7
Conclusions 8
Background 9-41
Present Accounting and Its Development 9-14
Development of Two Methods 9-10
Purchase Method 11
Pooling of Interests Method 12-14
Appraisal of Accepted Methods of Accounting 15-41
Purchase Method 17-26
An acquisition 18
A bargained transaction 19-20
Reporting economic substance 21
Defects attributed to purchase method 22-26
Pooling of Interests Method 27-41
Validity of the concept 28-30
Consistency with other concepts 31
Usefulness of the concept 32
Application of the concept 33-34
Defects attributed to pooling of interests method . 35-41
Issued by the Accounting Principles Board of the American Institute of Certified Public Accountants
COPYRIGHT 1970 BY THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, INC. 666 FIFTH AVENUE, NEW YORK, NEW YORK 10019