The Financial Accounting Standards Board (FASB) has just updated its Technical Plan, including highlights of 2Q 2007and scheduled activities through the first half of 2008. Of particular interest: Its release of FSAS 141R (Business Combinations, Applying the Acquisition Method) appears imminent, due before the end of September.
The final 141R may come sooner rather than later, as the Board also issued a comprehensive update on its convergence project with the International Accounting Standards Board (IASB) on their respective Business Combinations statements. During a series of June meetings, both Boards reviewed components such asTransition Provisions for Noncontrolling Interests and Replacement Share-Based Payment Awards, while only the FASB considered Contingencies and the IASB looked at Operating Leases in which the Acquiree is the Lessor.
What won’t change. The Boards affirmed the original definition of an intangible asset: one that is identifiable (contractual or separable) and measurable with sufficient reliability apart from goodwill. They also confirmed the premise of value (current exchange rather than entity-specific). In reviewing a long list of specific intangibles, the Boards preserved the definition of an assembled workforce, for instance, confirming that it should not be recognized as an intangible asset, separate from goodwill. For their convergent (and sometimes divergent) positions on reacquired rights, R&D assets, and more, read the complete Project Update.
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