Evolving standards of fair value and acquisition accounting

Stephen Bryan; Steven Lilien; Bharat Sarath; Yan Yan

doi:https://doi.org/10.1142/9789811220470_0018

Evolving standards of fair value and acquisition accounting

Stephen Bryan, Steven Lilien, Bharat Sarath, Yan Yan

Rutgers Business School Acctg & Info Systems

Rutgers, The State University

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

Many of the new accounting standards that have been enacted over the past two decades have not only impacted accounting on their own but also interacted with the existing standards in unanticipated ways, particularly since many of the new standards require managerial estimates to be incorporated into the financial statements. As an illustration, we focus on the interaction between the adoption of fair value assessments and the use of acquisition method accounting (formerly called purchase accounting). We highlight the unusual effects on goodwill measurement. After explaining why this combination is potentially problematic, we provide examples of how these standards are being implemented in practice.

Original language	American English
Title of host publication	Information For Efficient Decision Making
Subtitle of host publication	Big Data, Blockchain And Relevance
Publisher	World Scientific Publishing Co.
Pages	525-543
Number of pages	19
ISBN (Electronic)	9789811220470
DOIs	https://doi.org/10.1142/9789811220470_0018
State	Published - Jan 1 2020

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)
Business, Management and Accounting(all)

Keywords

Fair value accounting
Goodwill
Managerial estimates
Statement of financial accounting standards 142

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https://doi.org/10.1142/9789811220470_0018

Cite this

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AB - Many of the new accounting standards that have been enacted over the past two decades have not only impacted accounting on their own but also interacted with the existing standards in unanticipated ways, particularly since many of the new standards require managerial estimates to be incorporated into the financial statements. As an illustration, we focus on the interaction between the adoption of fair value assessments and the use of acquisition method accounting (formerly called purchase accounting). We highlight the unusual effects on goodwill measurement. After explaining why this combination is potentially problematic, we provide examples of how these standards are being implemented in practice.

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Evolving standards of fair value and acquisition accounting

Abstract

ASJC Scopus subject areas

Keywords

Access to Document

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