FASB Holds July 8 Meeting

At its July 8, 2026, meeting, the FASB discussed feedback on the guidance in ASC 805 on asset acquisitions and business combinations that the Board received as part of its January 2025 invitation to comment on its agenda consultation. Stakeholders had expressed a number of concerns regarding this guidance, including those related to (1) gaps and lack of specificity in the asset acquisition guidance, (2) certain unjustifiable differences between the accounting requirements for business combinations and those for asset acquisitions, and (3) inconsistencies between the “accounting requirements for acquisitions of VIEs that do not meet the definition of a business [and those] for other asset acquisitions” even when the transactions are economically similar.

At this meeting, Board members gave their views on four potential approaches the staff had suggested for responding to the issues raised by stakeholders, but no decisions were made. In addition, the Board decided not to add to its technical agenda projects on “the definition of a business, pushdown accounting, or pushdown of parent’s basis in a common control transaction.”

For more information, see the tentative Board decisions and meeting handout on the FASB’s Web site.