What is FAS 141 R?
What is FAS 141 R?
FAS 141(R) applies to all business combinations in which an acquirer obtains control of one or more businesses. FAS 141(R) retains the “acquisition method” (formerly known as the “purchase method”) of accounting for all business combinations and requires an acquirer to be identified for each business combination.
When was SFAS 141 effective?
June 30, 2001
16. SFAS 141 was issued in June 2001 and was effective for all business combinations initiated after June 30, 2001. SFAS 142, Goodwill and Other Intangible Assets, was also issued in June 2001 and was effective for calendar year companies on January 31, 2002.
What is FAS 141R and FAS 160?
In December 2007, the FASB introduced FAS 141r and FAS 160, changing longstanding accounting rules for business combinations and noncontrolling (minority) interests, respectively. Both revisions are effective for annual reporting periods beginning on or after December 15, 2008.
What FAS 142?
The objective of SFAS 142 is to improve a faithful representation of intangible assets with indefinite lives by eliminating the systematic amortization and applying reinforced fair value impairment tests. The results of the enactment of SFAS 142 have had a significant economic impact on financial reports.
What is fas160?
160, Noncontrolling Interests in Consolidated Financial Statements. Statement 160 establishes accounting and reporting standards for noncontrolling interests in a subsidiary and for the deconsolidation of a subsidiary.
What were FASB primary reasons for issuing FAS 141R and FAS 160?
The FASB’s main objective in the issuance of FAS 141R and FAS 160 was to improve the information reported about a business combination and to achieve global convergence with the IASB and IFRS 3 (IASB, 2008). The FASB worked closely with the IASB to promote international convergence of accounting standards.
Is goodwill an indefinite life?
Goodwill is a premium paid over the fair value of assets during the purchase of a company. Goodwill is perceived to have an indefinite life (as long as the company operates), while other intangible assets have a definite useful life.
How is goodwill written off?
When one company buys another, the purchase price often exceeds the sum of tangible and intangible assets and liabilities. Companies recognize goodwill write-offs in their income statements, generating reported losses as a result.
What does ASC stand for?
|ASC||Ambulatory Surgical Center|
|ASC||Ambulatory Surgery Center|
|ASC||American Society of Criminology|
|ASC||Ambulatory Surgery Centers|
How do you show non-controlling interest in consolidated financial statements?
To calculate the NCI of the income statement, take the subsidiaries net income and multiply by the NCI percentage. For example, if the organization owns 70% of the subsidiary and a minority partner owns 30% and subsidiaries net income say $1M. The non-controlling interest would be calculated as $1M x 30% = $300k.
When does FAS 141 ( are ) become effective?
Statement of Financial Accounting Standards No. 141 (revised 2007), Business Combinations, (FAS 141 (R)) becomes effective for most organizations with fiscal years beginning during 2009, and significantly changes acquisition accounting and the accounting for income taxes.
What is acquisition method in FAS 141 ( are )?
FAS 141 (R) retains the “acquisition method” (formerly known as the “purchase method”) of accounting for all business combinations and requires an acquirer to be identified for each business combination.
When does FAS 141 ( are ) apply to joint ventures?
However, it does not apply to the formation of a joint venture, the acquisition of an asset or a group of assets that does not constitute a business, a combination between entities or businesses under common control, or a combination of not-for-profit organizations or the acquisition of a for-profit business by a not-for-profit organization.
How are transaction costs expensed under FAS 141?
Under FAS 141 (R), transaction costs incurred as part of a business combination such as fees for investment banking, advisory, attorneys, accountants, valuation and other experts are to be expensed as incurred. For tax purposes, a determination of the future tax treatment of such costs needs to be made as the costs are incurred.