- Effective March 15, 2001, all companies with fiscal years after this date (but not calendar year companies) are entitled to elect early adoption of the FASB's new purchase rules.
- Effective June 30, 2001, pooling is officially eliminated. Mergers and acquisitions occurring after this date must use the purchase method. Acquired goodwill must still be amortized through the fiscal year.
- Effective December 15, 2001, companies with a fiscal year beginning after this date no longer must amortize existing goodwill.
The new FASB rules are slipping into the mainstream of accounting for mergers and acquisitions. CFO.com has prepared a special report on business combinations, explaining how these rules should be applied.
Included in the report are tips for tackling the impairment test, avoiding Securities & Exchange Commission inquiries, finding valuation experts, and more. The report is available at http://www.cfo.com/FASBguide.