FASB Discusses Project on Asset Acquisitions and Business Combinations

At its September 2, 2020, meeting, the FASB discussed the objective and scope of its project on improving the accounting for asset acquisitions and business combinations. The Board intends to narrow the differences between the two acquisition models and directed its staff to consider existing, as well as alternative, models. The FASB noted that the project will “address the accounting for contingent consideration, transaction costs, certain recognition and measurement exceptions, as well as the accounting for contingent consideration and in-process research and development (IPR&D) by a primary beneficiary of a variable interest entity that is not a business.” In addition, the scope of the project has been narrowed.