FASB Seeks to Align Accounting Guidance Between Asset Acquisition and Business Combinations
There’s an effort underway by the Financial Accounting Standards Board (“FASB”) to look at closing the gap between the accounting standards for business combinations and the accounting standards for acquisition accounting. Because these two sets of accounting guidance are different, businesses are sometimes motivated to structure merger and acquisition (“M&A”) deals in ways that avoid complex accounting. Decreasing the differences between these standards could help make M&A activity more straightforward in the future. This effort is also a continuation of the FASB’s work to more clearly define what a business is for U.S. generally accepted accounting principles (“GAAP”). Some critics. Read More.
Public Technology Companies Show Increased Market Performance
Positive news came to the technology industry, as performance of various sectors within the industry reveals growth performance, according to Hyde Park Capital. In a recent report on Technology M&A, all sectors of the technology industry experienced a positive public stock market performance. Of the largest gains, Internet was up 45 percent, Software-as-a-service (SaaS) grew 33 percent, and IT Services were up by 22 percent. This performance gain for technology companies might signal future M&A growth activities to come. Read more on the trends and activities in the technology industry by clicking here .