At its meeting on October 7, 2020, the AcSB discussed the remaining substantive stakeholder comments relating to disclosures, effective date and transition on the Exposure Draft, “Combinations – Initial Measurements and Related Disclosures.” The Board tentatively decided to:

1. separate the disclosure requirements for mergers occurring during a fiscal year and mergers that occur after year-end;
2. require disclosure of the method used to account for a combination; and
3. retain the effective date of fiscal years beginning on or after January 1, 2022.

The AcSB also discussed:

1. whether the difference between the consideration transferred and net assets acquired should be accounted for in net assets instead of in the statement of operations; and
2. if the transition provisions should permit an entity to restate a combination that occurred in a prior fiscal period.

The Board will seek the Not-for-profit Advisory Committee’s advice on these issues before making a final decision. The AcSB continues to move this project forward as expeditiously as possible given the current environment. It plans to issue the final standard in March 2021. The Board expects to finalize its deliberations on this topic at its next meeting on October 27, 2020, before commencing the balloting process.

Review the Executive Summary on the AcSB's Web site.