|FOR IMMEDIATE RELEASE:||CONTACT: CHRISTI HARLAN|
|Wednesday, February 9, 2000||202-224-0894|
Sen. Phil Gramm, chairman of the Senate Committee on Banking, Housing and Urban Affairs, has announced plans for a full committee hearing on the pooling method of accounting for corporate assets in mergers.
The Financial Accounting Standards Board has proposed a rule that would eliminate the pooling method. Following this change, all business combinations would be accounted for as acquisitions using the purchase method of accounting.
"Pooling accounting is an important tool for American businesses, particularly the high-tech and financial services industries," Gramm said. "As chairman of the committee with oversight responsibility in this area, I have heard little demand for the proposed change in accounting rules, yet the impact could be very detrimental to the financial services industries and the technology companies on the cutting edge of the economy of our future."
Gramm said the committee will extend invitations for testimony to Edmund Jenkins, chairman of the Financial Accounting Standards Board, and to a panel of witness from the private sector.
Committee on Banking, Housing and Urban Affairs
10:00 a.m. Thursday, March 2, 2000
Room 628 Dirksen Senate Building