FASB Accounting Standards Update (ASU), Business Combinations (Topic 805) and Consolidations (Topic 810)

TXCPA's PSC supports the proposed ASU on Business Combinations, improving clarity for VIE transactions. They suggest expanding the scope to include all acquisitions involving equity exchanges, regardless of business status.

View request for comment | View TXCPA PSC comment letter (Dec. 13, 2024)

The Texas Society of CPAs' Professional Standards Committee (PSC) has provided feedback on the proposed Accounting Standards Update (ASU) addressing Business Combinations and Consolidations. The PSC supports the amendments, which improve comparability and clarity for transactions involving variable interest entities (VIEs) and suggests expanding the scope to include all acquisitions primarily involving equity exchanges, regardless of whether the legal acquiree meets the definition of a business.

Topics:

You May be Interested in

The IRS May Owe Your Clients Money from the COVID Period
Recent court decisions have opened a largely overlooked opportunity for significant tax refunds based on mandatory disaster relief under IRC Section 7508A during the federally declared COVID-19 disaster period. As a result, interest and penalties assessed during this period may be invalid and refundable, and some taxpayers who received refunds may also be entitled to unpaid overpayment interest. While uncertainty remains and the IRS may resist such claims, timely protective refund filings are critical to preserve clients rights as the statute of limitations continues to run.
TXCPA Advocates for Accounting’s Recognition in Definition of Professional Degrees for Student Loan Eligibility
TXCPA submitted a formal comment to the U.S. Department of Education urging recognition of accounting as a professional degree program to protect graduate-level federal loan access and strengthen the future CPA pipeline.
The Verdict is In. The Texas Franchise Tax is GILTI, Raising New Questions and Potential Issues
Beginning with the 2026 report year, the Texas Comptroller will align the franchise tax with the current Internal Revenue Code, likely requiring GILTI to be included in total revenue. This change raises sourcing, statutory and potential constitutional questions for businesses with foreign operations, creating new uncertainty and possible tax impacts.