The ASC's version of group therapy
Article Abstract:
The Accounting Standards Committee (ASC) has announced it will be drafting new standards concerning the accounting for both goodwill and mergers and acquisitions. The ASC proposes new goodwill rules that will recognize goodwill arising from acquisitions on balance sheets and amortize goodwill. There is still no agreement whether amortization of immediate write-offs is preferable, but amortization is a convenient approach for the ASC as it will bring UK accounting standards into line with international practice. The ASC is proposing to permit merger accounting only when neither party sees themselves as acquired and neither party dominates management. The problem with these criteria is that they are subjective and do not create a satisfactory merger accounting test.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1989
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Head first into the lion's den
Article Abstract:
The Accounting Standards Committee has moved quickly to review two accounting standards that are in need of revision: Accounting for Goodwill (SSAP 22), and Accounting for Acquisitions and Mergers (SSAP 23). However the committee may find that it is easier to identify what is wrong with the standards than to find workable solutions. The purpose of the review of the Acquisitions standard will be to determine the situations in which merger accounting leads to useful information. Related to this problem is the avoidance of recognizing goodwill in merger accounting.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1987
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Fundamentally impaired
Article Abstract:
The development of UK accounting standards for the intangible assets of a merged business entity is discussed.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 2003
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