Summary of Statement No. 72
Summary of Statement No. 72
Accounting for Certain Acquisitions of Banking or Thrift Institutions--an amendment of APB Opinion No. 17, an interpretation of APB Opinions 16 and 17, and an amendment of FASB Interpretation No. 9 (Issued 2/83)
Summary
This Statement amends APB Opinion No. 17, Intangible
Assets, with regard to the amortization of the unidentifiable
intangible asset (commonly referred to as goodwill) recognized in
certain business combinations accounted for by the purchase method.
If, and to the extent that, the fair value of liabilities assumed
exceeds the fair value of identifiable assets acquired in the
acquisition of a banking or thrift institution, the unidentifiable
intangible asset recognized generally shall be amortized to expense
by the interest method over a period no longer than the discount on
the long-term interest-bearing assets acquired is to be recognized
as interest income. This Statement also specifies that financial
assistance granted to an enterprise by a regulatory authority in
connection with a business combination shall be accounted for as
part of the combination if receipt of the assistance is probable
and the amount is reasonably estimable.