141(R) Looms for Deal Makers


FINANCIAL REPORTING

A ccording to a new Deloitte poll, executives are already anticipating the impact FASB Statement no. 141(R), Business Combinations, will have on their financial planning and reporting around mergers, acquisitions and ownership changes.

Forty percent of more than 1,850 executives said the revised standard would cause them to rethink deal strategy and/or impact planned deal activity.

"The finance and accounting, business development, tax and legal departments of companies are working to understand the implications of Statement 141(R) as the processes for how a deal is consummated and reported will require significant preliminary and ongoing analyses," Stamos Nicholas, Deloitte’s national business valuation leader, said in a news release.

Statement no. 141(R) is effective for fiscal years beginning after Dec. 15, 2008. While early adoption of Statement no. 141(R) rule changes is prohibited, 4% of poll respondents indicated their companies already finished assessing the valuation impact of the statement.

For an analysis of some of the significant changes created by the revised standard, see “ A New Day for Business Combinations,” JofA, June 08, page 34.

Source: Deloitte Financial Advisory Services LLP, www.deloitte.com.

SPONSORED REPORT

A new line of business to consider

Technology assessments may open the door to new engagement opportunities for your firm. What is a technology assessment? How do you perform one? JofA Tech Q&A author J. Carlton Collins shows you in a detailed explanation.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.