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FASB will consider several convergence issues next week

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29 May 2003

At its meeting on 4 June 2003, the FASB will discuss several matters of convergence with IFRS: Balance sheet classification of (a) short-term obligations expected to be refinanced and (b) obligations due on demand because of breach of a borrowing agreement.

While IFRS and US GAAP are now the same, in the Improvements Project IASB has proposed to classify these as current unless (a) refinancing is completed by balance sheet date or (b) the lender has granted the waiver before balance sheet date.
  • Differing conclusions reached by the FASB and IASB for the subsequent recognition of deferred tax benefits acquired in a business combination (IASB would recognise income while FASB would reduce goodwill).
  • The implications of full goodwill method in a business combination. One of the conclusions tentatively reached in the "purchase method procedures" joint IASB-FASB project is that if an entity acquires less than a 100% interest in another entity, both the acquirer's and the minority interest's share of goodwill should be recognised. Minority goodwill isn't recognised under current standards.
  • Correction list for hyphenation

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