FASB's New Rules are Now In Effect

Important dates:

  • 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.

You may like these other stories...

By Jason Bramwell, Staff WriterChicago-based professional services firm BDO USA LLP has expanded into the western Pennsylvania market by acquiring Pittsburgh-based accounting firm Alpern Rosenthal. The merger is effective...
By Jason Bramwell, Staff Writer Two Ohio accounting firms – Dayton-based Battelle & Battelle and Cincinnati-based Rippe & Kingston – recently finalized their merger and will now...
By Jason Bramwell, Staff Writer Dallas-based accounting firms Nicholas Montgomery, LLP and TravisWolff, LLP completed their merger on December 2, according to officials from both companies. The firms will...

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.