pooling of interest
- noun
- Archaic
:
fusión por interés
- A successful pooling of interest can lead to significant savings.
- pooling of interest for a merger
Examples
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The merger was accounted for using the pooling of interest method, simplifying the financial reporting process.
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The company avoided taxes on the merger by applying the pooling of interest approach.
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Under pooling of interest accounting, the assets and liabilities of both firms are combined without revaluation.
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The pooling of interest allows companies to merge without tax penalties.
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The company used pooling of interests accounting to merge its financial statements and avoid tax liabilities.
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In a pooling of interests transaction, the assets of both companies are combined line by line on the balance sheet.
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Many businesses prefer pooling of interests during mergers because it simplifies the consolidation of their finances.
Surface Forms
Morphology
The components 'pool' (to put together) and 'interest' (a stake or share) transparently yield the basic idea of combining stakes, so a B1 learner who knows the words would likely infer a general sense of 'combining interests'. However, the phrase refers to a specific accounting procedure (balance-sheet item‑by‑item combination and tax implications) that is technical and not fully predictable from the constituents, so the meaning is only partially derivable.
Etymology
Pooling of interest comes from the image of pouring two pools into one. To pool is to put things together and interest here means a company's financial part, so the phrase helps you picture both firms' accounts being treated as one 'combined' set in a 'merge'.
