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Exposure Draft on Not-For-Profit mergers/goodwill

Monday, January 29, 2007

The FASB's objective for the project related to not-for-profit mergers/goodwill is to develop standards of accounting and reporting for the acquisition of another entity by a not-for-profit organization. In developing that standard, the board expects to improve the completeness, relevance and comparability of financial information about such acquisitions reported in the financial statements of not-for-profit organizations. Two exposure drafts related to the project were issued on October 9, 2006; “Not-for-Profit Organizations: Mergers and Acquisitions” and “Not-for-Profit Organizations: Goodwill and Other Intangible Assets Acquired in a Merger or Acquisition”. Comment letters from constituents that express their views on issues addressed in the exposure drafts are due for submission to FASB by January 29, 2007. An update of the project can be found on the FASB website (www.fasb.org) under Exposure documents.