Case Name :      Merger of NOVA Corporation and TransCanada Pipelines Ltd.

Authors :           Claude P. Lanfranconi, Jacque Murphy

Source :             Ivey Publishing

Case ID :            999B13

Discipline :        Accounting

Case Length :    18 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Several large Canadian public companies announced their intent to merge and use the “pooling of interests” method rather than the traditional “purchase method”. Pooling had been rarely used to account for business combinations in Canada. The case focus is on an analyst who wanted to ensure that she understood the differential impact of both methods so that she could more fully represent her clients’ interests. She decided to use an analysis of the recent merger of TransCanada Pipelines and NOVA Corporation to help her better understand and evaluate the two alternative accounting methods and their impact on the financial statements.