IASB and FASB converging on purchased in-process R&D

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14 Aug 2003

In its project on purchase method procedures, the US FASB has tentatively decided to eliminate the requirement in FASB Interpretation No.

4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method, to charge to expense certain in-process research and development assets acquired in a business combination. The IASB's proposed amendments to IAS 38 clarify that, in a business combination, an acquirer must recognise separately from goodwill "any of the acquiree's in-process research and development projects that meet the definition of an intangible asset".

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