The Consolidation Standard is effective as of January 1, 2010 for calendar year end companies and the impact will soon be reported in the first quarter reporting cycle. As a result of applying the new guidance, certain entities may need to be consolidated while other entities may need to be deconsolidated. Determining who consolidates is just the beginning. There are several other accounting considerations that could follow—such as acquisition accounting for newly consolidated entities, potential changes to impairment tests, and how to measure the impact of deconsolidation of an entity under the M&A Standards.**
This edition of Mergers & acquisitions — a snapshot discusses accounting considerations related to the M&A Standards as a consequence of adopting the Consolidation Standard.
* This snapshot has been updated since its original issuance to reflect changes for contacts and branding. The snapshot has not been updated for ASU 2015-02 Consolidation (Topic 810): Amendments to the Consolidation Analysis.
** Accounting Standards Codification 805 is the US standard on business combinations, Accounting Standards Codification 810 is the US standard on consolidation and noncontrolling interests (collectively the “M&A Standards”).
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