United States

KPMG Comments on FASB Proposal to Simplify Accounting for Measurement-Period Adjustments Related to a Business Combination

Jul 13, 2015
From the Financial Reporting Network

KPMG LLP recently commented on the proposed FASB ASU, Simplifying the Accounting for Measurement-Period Adjustments, which would simplify the accounting for provisional amounts recognized in a business combination by eliminating the requirement for an acquirer to account for measurement-period adjustments retrospectively. Instead, an acquirer would recognize a measurement-period adjustment during the period in which the adjustment amount is determined. The FASB issued its proposed ASU as part of its Simplification Initiative.

KPMG supports the Board’s proposals, and suggested that the Board obtain sufficient input from financial statement users to evaluate the effects of the proposed changes. KPMG observed that eliminating the requirement to retrospectively report measurement-period adjustments would create a difference between U.S. GAAP and IFRS where convergence exists, and encouraged the Board to clearly communicate its priorities related to convergence. KPMG also suggested that the Board develop a broader strategy to address complexity in financial reporting.

Read KPMG Comment Letter

Read Proposed FASB ASU