M&A accounting guidance for Not-for-Profits.

FASB FASB

See: Financial Accounting Standards Board

FASB

See Financial Accounting Standards Board (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.

[ILLUSTRATION OMITTED]

The second draft, Not-for-Profit Organizations: Goodwill and Other Intangible Assets Intangible Asset

An asset that is not physical in nature.

Notes:
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible 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.

COPYRIGHT 2006 California Society of Certified Public Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.

Reader Opinion

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:	FASB News
Publication:	California CPA
Date:	Dec 1, 2006
Words:	96
Previous Article:	Tax year 2006 directions for corporations required to e-file.(News&Trends)
Next Article:	Guidance on auditing fair value of share options.(PCAOB News)
Topics:	Accounting Nonprofit organizations

Related Articles
FASB issues reports on asset impairment and not-for-profit field tests. (Financial Accounting Standards Board)(Brief Article)
GASB issues guidance on the use of not-for-profit accounting. (Governmental Accounting Standards Board)(Brief Article)
Which GAAP should NPOs apply? (not-for-profit organizations)(includes related article on standards for government entities)
FASB 124 attempts to resolve inconsistencies in NPO reporting. (Financial Accounting Standards Board, not-for-profit organizations)(Brief Article)
FASB and GASB define "government." (Financial Accounting Standards Board, Governmental Accounting Standards Board)(Brief Article)
Coping with NPO standards - it's not difficult. (accounting standards for nonprofit organizations)
FASB provides new NPO guidance.(Financial Accounting Standards Board; nonprofit organizations)
Financial Statements: How useful is your information? (Accounting).
Not-for-Profits' reporting costs of soliciting contributed services clarified. (accounting & auditing news).(Brief Article)
FASB issues proposal on GAAP Hierarchy.(FASB News)(Financial Accounting Standards Board)(Brief Article)