Comprehensive summary of Business Combinations Phase II
10 Aug 2004
The IASB and the US FASB are developing common exposure drafts of their proposed standards on accounting for business combinations.
Those exposure drafts will incorporate (1) the decisions reached in the Boards' current joint purchase method procedures project (Phase II) and (2) the decisions previously reached in the Boards' separate Phase I projects, which led to the issuance of FASB Statement No. 141 Business Combinations, and IASB IFRS 3 Business Combinations. The common EDs will be similar in both wording and style (including the IASB style of highlighting principles in bold type). The expected issuance date of the EDs is now the fourth quarter of 2004. The FASB has just posted on its website a 156-page staff summary of tentative decisions reached in Phase II of the project. Because there is no comparable summary on the IASB's website and the Boards are working toward issuing nearly identical standards, the FASB summary should be of interest to those who are following the IASB project as well. Click to Download the FASB Summary (PDF 1,191k).