Business Combinations

Fresh SEC Guidance for Small Filers

Karen Kroll February 28, 2012

Take heart, all you overworked, overwhelmed non-accelerated filers! The SEC has published its latest batch of guidance for small public companies, a 54-slide summary of filing errors and issues common to non-accelerated filers. From musings about the MD&A to questions about controls, and extra tips on how to ask the SEC for help, it's all in there.

Fresh Reviews Planned for Standards on Mergers, Segments

Tammy Whitehouse February 17, 2012

One of the final arbiters of financial reporting rules—the Financial Accounting Foundation—will conduct a review of the accounting standards for reporting business mergers and reporting the performance of operating segments, to see whether recent changes in those standards were implemented effectively.

AICPA Offers Advice on Valuation, Accounting for IPR&D

Tammy Whitehouse November 29, 2011

A body of the American Institute of Certified Public Accountants is developing some professional guidance on how to value and account for any in-process research and development that is acquired in a business combination.

Study Shows Little Disclosure on Bargain M&A Prices

Tammy Whitehouse April 21, 2011

A recent review of merger and acquisition data by the Georgia Tech Financial Analysis Lab found that "bargain" shoppers aren't properly reporting their transactions on financial statements. In more than half of the cases analyzed, purchasers failed to provide the reasons for the discounted purchase price, a disclosure requirement of U.S. Generally Accepted Accounting Principles.

Companies Return to M&A to Find the Rules Have Changed

Tammy Whitehouse April 05, 2011

Corporate deal making is back, but you might want to brush up on accounting rules for mergers and acquisitions first. FASB changed the rules for M&A two years ago—when M&A was moribund—in ways that are catching many purchasers by surprise, particularly for restructuring charges and earnouts. Details inside.

FASB Advances EITF Proposals on Goodwill, M&A

Tammy Whitehouse October 08, 2010

The Financial Accounting Standards Board is proposing new updates to the Accounting Standards Codification around goodwill write-downs, business combinations, and revenue recognition for healthcare entities based on recommendations from its Emerging Issues Task Force.In the proposal titled Intangibles – Goodwill and Other (Topic 350): How the Carrying Amount of a Reporting Unit...

Firm Advises Care in Fair Value Measurement in M&A

Tammy Whitehouse March 26, 2010

As companies are following new rules for booking a business combination, there’s good reason to put a little extra elbow grease into the initial valuations. If there are subsequent adjustments, they have to be made by revising and reissuing previously issued financial statements, warns PricewaterhouseCoopers in a recent alert.It’s not...

SAB 112 Reflects Changes in M&A Accounting

Tammy Whitehouse June 12, 2009

The staff of the Securities and Exchange Commission has updated its guidance to reflect the latest rules on business combinations.Staff Accounting Bulletin No. 112 amends and rescinds bits and parts of the accounting bulletin series to bring it into conformity with current authoritative accounting and auditing guidance and other SEC...

FASB Retreats on Valuing Contingencies in M&A

Tammy Whitehouse April 06, 2009

The Financial Accounting Standards Board took a step back into old accounting literature to amend its new standard on accounting for business combinations.FASB published new guidance related to Financial Accounting Statement No. 141R, Business Combinations, to change the requirements around accounting for contingencies acquired in a business combination. That might...

In M&A, Assign Life to Dying Brands, EITF Advises

Tammy Whitehouse November 25, 2008

As consolidation partners pair off and plan their survival strategies, accounting rules may soon require them to assign some shelf life to brand names and other intangible assets that may be headed for the shredder.The Emerging Issues Task Force of the Financial Accounting Standards Board has been wrestling with what...

FASB Plans to Amend New Business Combination Rules

Tammy Whitehouse October 30, 2008

The Financial Accounting Standards Board is bowing to outcry from preparers and attorneys that accounting requirements around pending legal actions in business combinations are unworkable.In its regular weekly meeting Oct. 29, the board determined it will publish a staff position to amend Financial Accounting Statement No. 141R, Business Combinations. The...

FASB Adds Business Mergers Guidance to Codification

Tammy Whitehouse September 04, 2008

The Financial Accounting Standards Board has added guidance on business combinations to its online codification research tool, which is intended to simplify research of and compliance with U.S. Generally Accepted Accounting Principles.The codification is intended to serve as a single source for all authoritative GAAP. FASB developed the tool over...

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