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According to Reuters, the firm recently looked at banks that did the most acquiring in the 1989 to 1991 period, when pooling of interest was still allowed.
When that option was eliminated about seven years ago, some executives in the technology industry said it could harm big tech companies, which often used pooling of interest to account for their mergers.
It suggests that the elimination of "pooling of interest" accounting in mid-2001 has made such deals highly unattractive for would-be acquirers, which has prevented the kind of deal activity that accompanied the previous downturn in the late 1980s.
FASB did away with what was called pooling of interest accounting, which Briloff says Cisco used to avoid the big smack to earnings.
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The pooling-of-interests structure will allow BHP and Billiton to maintain a measure of independence.
The deal used Microsoft stock in a pooling-of-interests transaction.
It results from Kozlowski's recent preference for large pooling-of-interest mergers.
In the merger game, pooling-of-interest accounting is getting more popular all the time.
Gulf & Western uses the pooling-of-interests technique in accounting for acquired companies.
He mentions how Cisco Systems Chief Executive John Chambers John Chambers browbeat him for backing elimination of pooling-of-interests accounting, a tool Levitt says Chambers used to greatly inflate earnings.
Among the more notable: Enactment of regulations governing fair disclosure of inside information, rules eliminating pooling-of-interests accounting and limited restrictions on how much consulting business accounting firms can do for audit clients.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com