FASB Votes For Business Combinations Reporting Cumulative Catch Up Adjustments

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March 19 – The Financial Accounting Standards Board voted to issue a narrow proposal to simplify the accounting for the measurement period adjustments in a business combination.

In accounting for business combinations, an acquirer should recognize measurement period adjustments in the reporting period in which new information is obtained within the one year measurement period, FASB said March 18.

Measurement period adjustments can occur when the date of acquisition occurs before the acquirer has to file its financial statement and the acquirer subsequently discovers new information that affects the value or circumstances of the transaction after the acquisition date.