Valuation Glossary

Pooling of interests is an accounting method used in mergers and acquisitions where the balance sheets of the combining companies are combined without any adjustments to the book values of their assets and liabilities. This method treats the merged companies as if they have always been a single entity.

Pension benefits refer to the retirement income that an employee receives after leaving employment, typically funded by contributions from both the employer and the employee. These benefits are part of a pension plan, which is a type of retirement plan designed to provide income to employees after they retire.

The partial goodwill method is an accounting approach used in business combinations, specifically for recognizing goodwill. Under this method, only the portion of goodwill that is attributable to the acquirer is recognized, based on the acquirer's ownership interest in the acquiree.

The partial fair value method is an accounting approach used to measure the fair value of non-controlling interests (NCI) in a subsidiary at the acquisition date.

Postretirement benefits refer to benefits that a company provides to its employees after they retire, in addition to pension plans. These benefits typically include health care, life insurance, and other forms of non-pension benefits. They are part of the total compensation package designed to support employees in their retirement years.