Tweaks to Accounting Rules for Business Deals Near Finish Line

The US accounting standard-setter will draw up a final plan clarifying which party in a business acquisition counts as the acquirer for financial reporting purposes.

The Financial Accounting Standards Board unanimously agreed Wednesday to advance the draft plan, noting the expected benefits of more consistent rules for identifying the acquiring entity justify implementation costs. Public feedback, due late last year, indicated those expenses wouldn’t be substantial, FASB said.

The board will vote on a final plan by written ballot.

Identifying the acquirer for accounting purposes is important because it impacts which entity’s liabilities and assets are remeasured. The accounting ...