FASB has introduced a proposed accounting standards update (ASU) to refine the identification of the accounting acquirer in business combinations.
The initiative, stemming from the Emerging Issues Task Force, seeks to enhance the consistency of requirements under FASB Accounting Standards Codification Topic 805.
The proposal emphasizes that the determination of the accounting acquirer can significantly influence the carrying amounts of assets and liabilities, ultimately affecting post-transaction net income.
FASB will accept public comments on the proposed ASU through Monday, Dec. 16. Read more.