It is clear that SFAS 141R accounting cannot be applied retrospectively—only business combinations on or after the effective date (December 15, 2008) will use the new rules. This means that, dependent on the specific characteristics (e.g. the existence of contingent consideration, in-process R&D, etc.), the closing of some acquisitions will be more beneficial to the acquirer prior to the rules becoming effective while others will be more beneficial after.
In the July 31st webinar sponsored by Compliance Week and titled "Getting Ready for SFAS 141R, Business Combinations," Matthew Crow, ASA, CFA (Mercer Capital, Memphis, TN) opined, “Some acquisitions may be moved up because they are more advantageous under 141, while others may be pushed back because they are more advantageous under the new 141R.”
Co-presenter Travis Harms, CPA/ABV, CFA (Mercer Capital, Memphis, TN) re-iterated that the upcoming quarter could see more acquisitions due to the adoption of 141R.
Crow and Harms have also teamed up to create a Free Podcast just posted last week and available on the Mercer Capital website here that’s titled Mercer Capital Podcast: SFAS 157—Portfolio Valuation.
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