FASB Releases Proposed ASU on Identifying the Acquirer in a Business Combination

The FASB has released a proposed ASU that would enhance the guidance in ASC 805 on identifying the acquirer in a business combination. Specifically, the proposal, which is based on an EITF recommendation, “would more closely align the requirements for determining the accounting acquirer in the acquisition of a variable interest entity (VIE) with the current requirements that apply to transactions that do not involve a VIE.”

Comments on the proposed ASU are due by December 16, 2024. For more information, see Deloitte’s June 2024 EITF Snapshot as well as the press release on the FASB’s Web site.