FASB Unit Approves Indemnification Rule for Assets in Assisted Acquisitions

The Accounting Policy & Practice Report ® provides financial accounting policy makers, advisors, and practitioners with the latest news, expert insights, and guidance on emerging, evolving, and complex accounting issues. Expert News & Commentary.

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.