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FASB releases SFAS 141R

 

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The Financial Accounting Standards Board (FASB) today released Statement No. 141 (revised 2007), Business Combinations. The revised Statement establishes principles and requirements for how the acquirer shall:

  • Recognize and measure acquired assets and assumed liabilities
  • Recognize and measure the acquired goodwill in the business combination, or a gain from a "bargain purchase"
  • Determine disclosures associated with financial statements
SFAS 141R replaces or supersedes:
  • Statement No. 141 (2001)
  • FIN No. 4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method
SFAS 141R amends:
  • SFAS No. 109, Accounting for Income Taxes
  • SFAS 142, Goodwill and Other Intangible Assets, “to, among other things, provide guidance on the impairment testing of acquired research and development intangible assets and assets that the acquirer intends not to use.”
Application of SFAS 141R applies to business combinations “for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.”

To read the full Statement No. 141R, click on the "download file" link in the header of this post.

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