FASB Staff Drafts: "Consolidated Financial Statements and Business Combinations"
Monday, March 21, 2005
The Committee on Corporate Reporting of Financial Executives International and the Financial Reporting Committee of the Institute of Management Accountants (“the Committees”) are writing to provide their views on the Financial Accounting Standards Board’s Staff Drafts (the “Drafts”) on Consolidated Financial Statements and Business Combinations (a revision of FASB Statement 141) posted to the FASB website. While we understand that the wording of the Drafts may change in an effort to conform the styles of International Financial Reporting Standards and FASB standards, we expect that the principles will remain unchanged when issued as formal EDs. The Committees strongly disagree with the conclusions in both of the Drafts. Moreover, we believe that the issues we have with the conclusions in the Drafts are indicative of broader concerns we have with the overall direction of accounting standards.