Norwalk, Conn. - The Financial Accounting Standards Board has issued rules to help nonprofit organizations properly account for mergers and acquisitions involving other not-for-profits.

FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions, is also intended to improve the information that a not-for-profit entity provides about goodwill and other intangible assets after an acquisition by amending FASB Statement No. 142, Goodwill and Other Intangible Assets, to make it fully applicable to nonprofits.

FAS 164 is effective for mergers occurring on or after Dec. 15, 2009, and acquisitions dated on or after the beginning of the first annual reporting period on or after Dec. 15, 2009. It can be found online at www.fasb.org.


Norwalk, Conn. - The Financial Accounting Standards Board has released FASB Statement No. 165, Subsequent Events, setting standards for the disclosure of events that occur after the balance-sheet date, but before financial statements are issued or are available to be issued.

FAS 165 introduces the concept of financial statements being "available to be issued." It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date - that is, whether that date represents the date the financial statements were issued or were available to be issued. The disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented.

The new standard should not result in significant changes in the subsequent events that an entity reports - either through recognition or disclosure - in its financial statements, FASB noted.

The standard is effective for interim and annual periods ending after June 15, 2009. Statement 165 can be found online at www.fasb.org.

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