Update No. 2010-07—Not-for-Profit Entities (Topic 958): Not-for-Profit Entities: Mergers and Acquisitions
On January 28, 2010, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2010-07, Not-for-Profit Entities (Topic 958) - Not-for-Profit Entities: Mergers and Acquisitions, to codify FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions. Statement No. 164 was issued in May 2009 to establish principles and requirements for how a not-for-profit entity:
- Determines whether a combination is a merger or an acquisition;
- Applies the carryover method in accounting for a merger;
- Applies the acquisition method in accounting for an acquisition, including determining which of the combining entities is the acquirer; and
- Determines what information to disclose to enable users of financial statements to evaluate the nature and financial effects of a merger or an acquisition.
Statement No. 164 also amended Statement No. 142, Goodwill and Other Intangible Assets, to make it fully applicable to not-for-profit entities. Statement No. 164 is effective for mergers occurring on or after December 15, 2009, and acquisitions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2009. |
