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.

 

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.