FAS 141 requires the use of the purchase method of accounting for all business combinations
and prohibits the pooling of interests method.
141, Business Combinations
, addresses financial accounting and reporting for business combinations
and supercedes Accounting Principles Board (APB) Opinion 16 rules on purchase and pooling accounting.
And business combinations
that proceed without his approval can be unwound by order of his office.
Statement 141 on Business Combinations
: 1) requires the use of purchase accounting for all business combinations
initiated after June 30, 2001; and 2) provides new criteria for determining when intangible assets should be recognized separately from goodwill.
were concerned that the opportunity to reduce income tax expense in future years for a portion of acquired tax benefits might sometimes influence purchase price allocations for business combinations
00 under management within eighteen (18) months and acquire three (3) operating businesses for business combinations
giving GOIH an intrinsic value of between $0.
The statements will change the accounting for business combinations
and goodwill in two significant ways.
By the end of June, the board was to have voted on two final statements, Business Combinations
and Goodwill and Other Intangible Assets.
The final Statement on Business Combinations
(which replaces APB Opinion No.
As it fine-tuned its statement on Business Combinations
A and Intangible Assets, did the Financial Accounting Standards Board buckle under political pressure from the likes of U.
Our goal is five business combinations
per year and 12-15 over a three (3) year period, giving Global 1 an intrinsic value of $0.
1999 proposed statement, Business Combinations
and Intangible Assets, the Financial Accounting Standards Board has tentatively decided to eliminate the pooling-of-interests method of accounting for business combinations
Still, a large number of respondents support the Board's fundamental conclusion about purchase accounting: All business combinations
are acquisitions, and should, therefore, be accounted for on the value exchanged (whether the consideration takes the form of cash, debt or equity).
Following a September 1999 exposure draft, Business Combinations
and Intangible Assets, FASB held public hearings in February and March.
We are actively seeking business combinations
in the areas of financial services, real estate and entertainment.