22 July 2015
Financial Reporting Developments - Intangibles - Goodwill and other
We have updated our FRD publication on goodwill and intangible assets to clarify and enhance our interpretative guidance. Refer to Appendix D of the publication for a detailed list of these updates.
2 July 2015
Comment Letter - FASB proposal on measurement-period simplification
In our comment letter, we supported the proposal to eliminate the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. We said the proposal would reduce costs and complexity while continuing to provide users of the financial statements with high-quality information.
27 May 2015
To the Point - FASB proposes simplifying measurement-period adjustments in business combinations
The FASB proposed eliminating today’s requirement that an acquirer in a business combination account for a measurement-period adjustment retrospectively. Instead, an acquirer would recognize a measurement-period adjustment during the period in which the amount of the adjustment is determined. Comments are due by 6 July 2015.
7 January 2015
To the Point - Private companies can recognize fewer intangible assets acquired in a business combination
The FASB issued final guidance that allows private companies to simplify their accounting by recognizing separately fewer intangible assets in a business combination and certain other transactions. The alternative limits the customer-related intangibles a private company recognizes separately to those that are capable of being sold or licensed independently from the other assets of the business. It also precludes the recognition of noncompetition agreements.
17 December 2014
Financial Reporting Developments - Business combinations
We have updated the pushdown accounting guidance in our Financial reporting developments publication on business combinations for Accounting Standards Update 2014-17, Pushdown Accounting - a consensus of the FASB Emerging Issues Task Force, and for SEC staff remarks at the 2014 AICPA Conference on Current SEC and PCAOB Developments relating to the presentation of expenses related to a business combination in which pushdown accounting was applied.
19 November 2014
To the Point - FASB makes pushdown accounting optional
The FASB issued final guidance that allows all acquired entities to choose to apply pushdown accounting (i.e., reflect the acquirer’s basis of accounting for the acquired entity’s assets and liabilities) when an acquirer obtains control of them. The SEC staff responded by rescinding its guidance on pushdown accounting, meaning SEC registrants and non-registrants will now follow the new US GAAP guidance.
16 January 2014
To the Point - An easier way for certain private companies to account for goodwill
The FASB issued final guidance that allows companies that don’t meet the new definition of a public business entity to amortize goodwill acquired in a business combination and to use a simpler one-step impairment test. While the guidance is effective for fiscal years beginning after 15 December 2014, early adoption is permitted, and companies can apply it to their 2013 financial statements if they have not yet made those statements available for issuance.
13 January 2014
Comment Letter - FASB proposal to eliminate development stage entity guidance
In our comment letter, we said we supported the FASB's efforts to reduce financial reporting cost and complexity by eliminating ASC 915 and its additional reporting requirements for development stage entities. However, we expressed our concern about how the proposed amendments could affect the way in which companies apply ASC 810's variable interest entity guidance and ASC 805's definition of a business when evaluating certain entities or operations that are in a development stage.
15 May 2013
Technical Line - Accounting for deals with puts, calls or forward contracts can be complex
Although the overall volume of merger and acquisitions activity has decreased slightly in recent years, we are seeing an increase in the complexity of deal structures, particularly those using call or put options or forward contracts (collectively referred to as equity contracts) that allow the buyer and seller to share the economic risks of an acquired business for a period of time. This Technical Line - the second in a series - addresses the accounting for equity contracts issued in a business combination. In December 2012, we issued a companion publication (pdf, 470.4kb) , which addressed the accounting and valuation considerations for contingent consideration issued in a business combination.
20 December 2012
Technical Line - Complex deal structures can affect future earnings and other metrics
We are seeing an increase in the complexity of deal structures, particularly those using contingent consideration or call or put options or forward contracts that allow the buyer and seller to share the economic risks of an acquired business for a period of time. This Technical Line – the first in a two-part series – addresses the accounting and valuation considerations for contingent consideration issued in a business combination. A companion publication that we will issue soon will address the accounting for equity contracts entered into between a buyer and a noncontrolling interest holder when the buyer acquires a controlling interest in an acquiree.
18 October 2012
Technical Line - How to qualitatively assess indefinite-lived intangibles for impairment
Accounting Standard Update (ASU) 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-lived Intangible Assets for Impairment, introduced an optional qualitative assessment for testing indefinite-lived intangible assets for impairment that may allow companies to avoid the annual calculation of the assets’ fair value. This Technical Line provides a framework for companies to consider when determining whether and how to apply the guidance and an example of a hypothetical company’s qualitative assessment.
27 July 2012
To the Point - Qualitative impairment test added for indefinite-lived intangibles
The FASB issued final guidance giving companies the option to perform a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. Our To the Point summarizes what you need to know about the Accounting Standards Update.
17 November 2011
Technical Line - How to use the new qualitative screen to test goodwill for impairment
Accounting Standard Update (ASU) 2011-08, Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, introduced an optional qualitative assessment for testing goodwill for impairment that may allow companies to skip the annual two-step test. This Technical Line provides a framework for companies to consider when determining whether and how to apply the qualitative screen.
15 September 2011
To the Point - Optional screen for goodwill impairment
The FASB issued an ASU on testing goodwill for impairmentwhich gives companies the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount and, in some cases, skip the two-step impairment test. The ASU is effective for fiscal years beginning after 15 December 2011 and early adoption is permitted. Our To the Point summarizes what you need to know about the ASU.
11 November 2009
Hot Topic - Definition of a business
Our Hot Topic provides an overview of the guidance on the definition of a business in ASC 805 as well as examples of the application of this guidance to certain transactions in the life sciences, real estate and extractive industries.
7 October 2009
Hot Topic - Proposed ASU: acquired R&D assets and contingent consideration in an asset acquisition
Our Hot Topic discusses a FASB proposal that would address the accounting for acquired research and development assets and contingent consideration in an asset acquisition.
26 June 2009
Technical Line - Implications of Statement 141(R) on mutual entities
Our Technical Line summarizes the implications of Statement 141(R) for business combinations of mutual entities.
26 May 2009
Hot Topic - FASB issues Statement 164 on business combinations by not-for-profit entities
Our Hot Topic addresses Statement 164 that amends the accounting for business combinations between two or more not-for-profit entities and establishes principles and requirements for how a not-for-profit entity determines whether a combination is a merger or an acquisition.
3 April 2009
Hot Topic - FASB issues FSP FAS 141(R) on preacquisition
Our Hot Topic summarizes FSP FAS 141(R)-1. The FSP significantly changes the accounting for pre-acquisition contingencies required by Statement 141(R) and has the same effective date as Statement FAS 141(R).
3 April 2009
Technical Line - FAS 142 impairment testing subsequent to the adoption of FAS 141(R), 157 and 160
Our Technical Line highlights the amendments made to FASB Statement No. 142¸ Goodwill and Other Intangible Asset by Statements No. 141(R) No. 157 and No. 160.
13 January 2009
Comment Letter - Proposed FSP FAS 141(R)-a-Preacquisition contingencies in business combinations
This comment letter presents our views on the proposed FASB FSP on pre-acquisition contingencies in business combinations.
22 December 2008
Hot Topic - Goodwill impairment considerations
Our Hot Topic is a reminder to consider the effect current conditions may have on goodwill impairment testing, including the need to perform interim impairment tests and the role market capitalization plays in the goodwill impairment model.
19 December 2008
Hot Topic - FASB issues proposed FSP on preacquisition contingencies
Our Hot Topic discusses the provisions of a proposed FSP that would amend Statement No. 141(R) by significantly changing the accounting for pre-acquisition contingencies required by Statement 141(R).
20 June 2008
Hot Topic - Statement 141(R) implementation series
Our Hot Topic focuses on issues related to the implementation of the new FASB standard on business combinations under Statement 141R.