AICPA Guide Clarifies Accounting Rules for Business Combinations

The American Institute of Certified Public Accountants released a guide aimed at demystifying accounting for mergers, acquisitions, and related transactions.

The guide provides valuation specialists, financial statement preparers, and independent auditors with best practices for how to approach business combinations according to US accounting standards, a Wednesday press release said. Topics discussed include how to identify acquirers and how to measure the liabilities assumed in combinations.

• The guide addresses several issues that have emerged recently, such as selecting an appropriate valuation method for intangible assets that businesses acquire, the release said.
• The AICPA’s report focuses on US accounting standards related ...