The pooling of interest is a consolidation method that is used when the parent's influence in the subsidiary is even greater than that in the purchase method of consolidation.
For example, the German commercial code HGB requires this method when the investment share lies between 90% and 100% and the purchase was made by exchanging stock.
The pooling-of-interest method does not deviate from the purchase method when it is employed for the elimination of intercompany payables and receivables, revenue and expense, and profit and loss.
The consolidation of investments considers only common stock as being relevant to consolidation.
The differential that is incurred during the elimination of the investment is always cleared against the retained earnings appropriations without affecting earnings.
In the Consolidation system, the pooling-of-interest method is implemented by setting special parameters in the purchase method.
More terms such as pooling-of-interest method in Dictionary P.
- Manual Plug-In:
- Help which enhances the functionality of an existing program. Additional functions which may not be needed or are mutually exclusive are often implemented as plug-ins. For example ICMAN contains various pooling-of-interest method definition.
- Manual Planned (PA):
- Help assign to objects or infotype records in Personnel Management. The status planned means that an object or infotype record has been suggested, but is not yet usable (active). You can edit objects or pooling-of-interest method explain.
- Manual Project Charter (SV-ASA):
- Help containing a clear definition of an enterprise's R/3 implementation goals, including objectives, scope, implementation strategy, deadlines, and responsibilities. The Project Charter is drawn up pooling-of-interest method what is.
- Manual Panel Dentist Association:
- Help Corporation under public law. The panel dentist association is responsible for the billing of services provided by panel dentists pooling-of-interest method meaning.
- Manual Period Regulation:
- Help Notice on real estate contracts Determines, with its defined time intervals, the possible customer notice dates over the term of the real estate contract pooling-of-interest method abbreviation.
