The pooling-of-interest method is one of two basic principles of capital consolidation; it assumes an equal joining together of two companies, whereby no acquisition price is paid, but shares are reciprocally traded. Trading of shares has the effect that the owners of both companies continue to have an ownership interest in the resulting union of companies. Additional characteristics are that there is no listing of goodwill; also not listed: any extrapolation of hidden reserves or debts affecting income. In addition, the company identity is not lost as a result of initial and consecutive consolidations.
(Opposite of: full consolidation)