Deal With It


A recent Deloitte poll found that an increasing number of executives are rethinking their deal strategy in light of FASB ASC 805, Business Combinations, formerly Statement no. 141(R).

 

Of executives polled, 44.3% said they are rethinking their strategy or that the standard would otherwise affect their deal strategy or planned deal activity, up from 40.3% in February 2008, soon after the standard took effect.

 

When asked what was their greatest concern about implementing ASC 805, 29.8% of executives said it was the shortened time frame within which good fair value estimates subsequent to the acquisition are needed. Other major concerns included increased likelihood of company earnings volatility for several years tied to new rules for fair value estimation (22%).

 

More than 2,025 executives from the technology, media and telecommunications; financial services; consumer and industrial products; life sciences and health care; and energy and resources industries responded to the survey during a March webcast, titled “Valuation Under SFAS 141R: What Implementation Lessons Are We Learning?” Listen to the webcast archive at tinyurl.com/mpj452.

 

Source: Deloitte Financial Advisory Services LLP and Deloitte Services LP, deloitte.com.

 

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TECHNOLOGY Q&A

How to create maps in Excel 2016

Microsoft Excel 2016 has two new mapping capabilities. J. Carlton Collins, CPA, demonstrates how to make masterful 2D and 3D maps in Excel 2016.

QUIZ

News quiz: IRS enforcement, a hot job, and audit value

The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.