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.

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