The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) each published an exposure draft (ED) containing joint proposals to improve and align the accounting for business combinations (www.iasb.org/current/ed.asp; www.fasb.org/draft).The International Accounting Standards Board  An editor has expressed concern that this article or section is .Please help improve the article by adding information and sources on neglected viewpoints, or by summarizing and (IASB IASB See International Accounting Standards Board (IASB). ) and the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) each published an exposure draft (ED) containing joint proposals to improve and align the accounting for business combinations (www.iasb.org/current/ed.asp; www.fasb.org/draft). The proposals retain the current requirement in both International Financial Reporting Standard 3 and FASB Statement no. 141 to account for all business combinations by means of a single method, in which one party always is identified as acquiring the other. Among the principal changes would be a requirement to measure the acquired business at fair value and recognize the goodwill attributable to any noncontrolling interests, not just to the acquirer. The IASB and FASB also published EDs proposing that noncontrolling interests be classified as equity within the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and that acquisitions of noncontrolling interests be accounted for as equity transactions (www.fasb.org/draft/ed_business_combinations_replacement_of_fas141.pdf; www.fasb.org/draft/ed_noncontrolling_interests.pdf). Comments on all the EDs are due October 28. |
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