Merger accounting rules.

Kiplinger Business Forecasts, December, 2000

Byline:Joan Pryde

Federal regulators still have a long way to go in fixing a controversial accounting standard affecting mergers. Although the Financial Accounting Standards Board (FASB) said Dec. 6 it had tentatively agreed on how to ease the standard, details are still vague enough that Congress and business groups will need to keep an eye on the board to make sure the result is beneficial for business combinations.

Whatever happens, don't look for a final decision from the FASB before the middle of 2001 at the earliest. The board may take even longer, depending on how difficult it is to spell out the fine print in the new standard, which is designed to eliminate the method of accounting known as "pooling of interests."

Businesses have...

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