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FASB moves to simplify business combination accounting

by Ken Tysiac | Oct 02, 2015   ()

FASB issued new guidance Friday designed to simplify accounting for adjustments made to provisional amounts recognized in a business combination.

The requirement to retrospectively account for those adjustments is eliminated by the amendments in Accounting Standards Update No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.

Stakeholders told FASB that the requirement to retrospectively apply these adjustments added cost and complexity to financial reporting without significantly improving the information available to financial statement users.

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Source: Journal of Accountancy

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