FASB Unit Approves Indemnification Rule for Assets in Assisted Acquisitions

Members of the FASB's task force unit reaffirm that the scope of the indemnification language within accounting guidance for business combinations would apply to government-assisted acquisitions of financial institutions. FASB's Emerging Issues Task Force ratifies this viewpoint as its final consensus for Issue No. 12-C, Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution.