Firms Battle Global Deals Accounting Changes Backed by Investors

Companies oppose being forced to disclose in financial statements how well their business acquisitions have performed, according to responses to a public consultation by global standard-setters.

Investors had supported the International Accounting Standards Board’s March proposal, saying it would help them assess acquisitions. The board’s plan would require companies to publish full details of post-acquisition performance against targets in the notes to their financial accounts.

Companies think that would involve forward-looking information, add disclosure costs, make auditing difficult, and lead to litigation risks, the feedback showed.

“I think this affects the priority of the project,” Zach Gast, a member ...