SEC Staff Updates Guidance on Business Combinations and Consolidation

The SEC’s Office of the Chief Accountant last week published a Staff Accounting Bulletin (SAB) that updates previous guidance by removing material no longer necessary because of developments in U.S. GAAP regarding business combinations and noncontrolling interests in consolidated financial statements. FASB Statement no. 141(R), Business Combinations, and Statement no. 160, Noncontrolling Interests in Consolidated Financial Statements, both became effective this year (for fiscal years beginning on or after Dec. 15, 2008).

SAB no. 112 also clarifies the basis of accounting for purchased assets and liabilities that should be used when a substantially wholly-owned subsidiary presents separate financial statements. The SAB will be effective upon publication in the Federal Register. The SAB is available here.