016 ASBJ project of the business combination in progress
Now we can see the goal of the ASBJ project of the business
combination (second phase). There is a policy announced
in 202nd meeting of Accounting Standards Board of Japan
(held in 28 May 2010), which is the following.
These are to be changed from current standards.
・“non-controlling interest” will be used instead of “minority
interest.”
・Full goodwill method will become applicable. (Only
purchased goodwill method is applicable currently. In full
goodwill method, goodwill related to minority interest will
also be recognized.)
・Recognition of conditional consideration (, which is not
recognized in the current accounting standard)
・Acquisition costs are expensed (acquisition costs are
capitalized in the current accounting standard)
・Adjustment of provisional accounting should be adjusted
retrospectively (The adjustment is accounted for in the
income).
By the way, they have put off making a decision about
specific accounts related to contingent liability and business
combination.
Within this year, they plan to announce an exposure draft
and revised standards. Wide range of revision can be inevitable
though revised standards have just become effective on this
April.
Understanding of IFRS should be urged to take a measure.
We should learn IFRS first with regard not only to business
combination but also to standards to be expected to change
drastically. In this way, we can adapt faster to revisions of
Japanese standards with more efficiency.
