What is FASB standard No. 141R and what is the Standard No. 164?
FASB standard No. 141R and the Standard No. 164 are both accounting standards set by the Financial Accounting Standards Board (FASB). FASB standard No. 141R focuses on business combinations, while Standard No. 164 focuses on accounting for assets. Let's delve into the key differences between these two standards.
Differences in Scope:
FASB standard No. 141R: This standard, introduced in 2007, specifically deals with accounting for business combinations. It broadens the definition of business combinations to include acquisitions of all assets and liabilities through any means.
Standard No. 164: Released in 2009, this standard provides guidance on accounting for assets when changing accounting methods. It applies to all types of assets such as tangible, intangible, and non-financial assets, for both public and private companies.
Applicability:
FASB standard No. 141R: Applies solely to business combinations.
Standard No. 164: Applies to all types of assets, providing a framework for companies to adjust their accounting for new and existing assets.
Complexity and Disclosure:
FASB standard No. 141R: This standard is generally more complex than Standard No. 164 and requires more detailed disclosures in financial statements regarding business combinations.
Standard No. 164: While comprehensive, Standard No. 164 may be considered less complex compared to FASB standard No. 141R and focuses on providing uniform guidance for accounting for various asset types.
In conclusion, the key differences between FASB standard No. 141R and Standard No. 164 lie in their scope, applicability, complexity, and focus areas within the realm of accounting standards. Understanding these differences is crucial for companies aiming to comply with the appropriate accounting standards for their business operations.