FASB 141R and FASB 160
FASB 141R focuses on closing the loop holes for recognizing all assets and liabilities in a business combination.
The FASB said FASB 141R establishes the requirements for how an acquirer:
-Recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest (fka minority interest) in the acquiree.
-Recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase, and
-Determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.
FASB 160 focuses on non-controlling interests (fka minority interest). It calls for all non-controlling interest to be recognized in the equity section of the balance sheet.
The FASB said the standard's requirement include provisions that call for:
-The ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled, and presented in the consolidated statement of financial position within equity, but separate from the parent's equity
-The amount of consolidated net income attributable to the parent and to the non-controlling interest be clearly identified and presented on the face of the consolidated statement of income, and
-Changes in a parent's ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently.
More to come later. Let me know if you have any concerns over these new standards and I will try to address them!!