M&A accounting guidance for Not-for-Profits.
FASB has issued two exposure drafts on accounting and disclosures for mergers and acquisitions by not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. organizations.
The first proposal, Not-for-Profit Organizations: Mergers and Acquisitions, eliminates the use of the pooling-of-interests method of accounting by not-for-profit organizations and requires the acquisition method for all mergers and acquisitions by a not-for-profit organization.
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The second draft, Not-for-Profit Organizations: Goodwill and Other Intangible Assets Acquired in a Merger or Acquisition, proposes accounting guidance for those intangible assets after a merger or acquisition.
Comments are due Jan. 29, 2007. Find more at www.fasb.org/news/nr100906.shtml.
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