FASB 141(R), Business Combinations – Revised accounting standard has valuation implications
Abstract: The accounting rules for mergers, acquisitions and other types of business combinations underwent a major overhaul in December 2007. The revised standard, Financial Accounting Standards Board (FASB) Statement No. 141 (revised), Business Combinations, or FASB 141(R), is effective for fiscal years beginning after December 15, 2008. This article revisits the subject of business combination in light of the new standard, exploring its valuation implications.