Accounting shake-up spells end for fake mergers

Article Abstract:

The International Accounting Standards Committee (IASC) is considering revising some of the accounting procedures in the field of acquisitions and mergers. The European Union is supportive of company accounts becoming more open. Some observers suggest the US may face difficulty in adapting to the new rules. The IASC plan to stop acquiring companies writing off their own restructuring costs. It also will look into cutting the number of company takeovers which are falsely declared to be mergers, in order to reduce their goodwill payments.

Management, International Accounting Standards Board

---

Pooling to be banned by US regulator

Article Abstract:

Strong pressure from international accounting authorities has prompted the US Financial Accounting Standards Board to decide to ban pooling-of-interest deals by the end of 2000. Poolings, which combine net asset values of the merging parties, have been used very successfully since 1996, especially for domestic US deals. However, they are already banned in other leading merger and acquisition markets. Experts believe that it is difficult to anticipate the repercussions of this decision.

Accounting Methods

---

Similar abstracts:

• Abstracts: Uncovering strategic assumptions: understanding managers' ability to build representations
• Abstracts: Winners and losers. Jobs and wages revisited
• Abstracts: Time for a change? Buying private companies. Should you demerge?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.