Pooling of interests method & Purchase acquisition method

• An acquirer's accounting standard: IFRS
• An acquirer exchanged common stock for all of the outstanding shares of the acquired company.

Pooling of interests method & Purchase acquisition method

		Pooling of interests method	Purchase acquisition method
Acquired (purchased) company	Assets	Included on the acquirer's B/S At BV (*2)	Included on the acquirer's B/S At FV (*1)
Acquired (purchased) company	Liabilities	Included on the acquirer's B/S At BV (*2)	Included on the acquirer's B/S At FV (*1)
	Reported goodwill	No (*3)	Yes (*4)

(*1) FV: Fair Value (at the time of the purchase)
(*2) There is NO adjustment of balance sheet asset and liability values to their fair values.
(*3) The purchase price is NOT reflected on the balance sheet of the acquiring firm.
(*4) Reported goodwill could be depending on the fair value of the identifiable assets and liabilities compared to their book values.