FASB recently published an Accounting Standards Update (ASU) to improve the requirements for identifying the accounting acquirer in FASB ASC Topic 805, Business Combinations.
The ASU, proposed last year based on an Emerging Issues Task Force recommendation, is effective for annual reporting periods beginning after Dec. 15, 2026, and interim reporting periods within those annual reporting periods.
The ASU will revise current guidance for determining the accounting acquirer for a transaction effected primarily by exchanging equity interests in which the legal acquiree is a variable-interest entity that meets the definition of a business. Read more.