The first proposals for a converged standard from the International
Accounting Standards Board and its US counterpart FASB will be accounting for
mergers and acquisitions to a ‘fair value model’.
The proposal will have major implications for merger accounting, not least
the idea that a buyer will recognise the full goodwill of an acquired company,
including the goodwill of minority shareholders.
Experts believe that the standard may ‘fuel’ controversy because of the
difficulty in calculating fair value amounts. There were also calls for further
work on accounting for M&A.
Mark Vaessen, head of KPMG’s financial reporting group, said: ‘We see a real
need for a next phase on M&A related topics. There are quite significant
practical issues around group reorganisations and joint ventures that we would
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.