Summary of Statement No. 79
Elimination of Certain Disclosures for Business Combinations by Nonpublic Enterprises--an amendment of APB Opinion No. 16 (Issued 2/84)
Summary
This Statement amends APB Opinion No. 16, Business
Combinations, to eliminate the requirement for nonpublic
enterprises to disclose pro forma results of operations for
business combinations accounted for by the purchase method.
Disclosure requirements for public enterprises are not changed by
this Statement.
This Statement is a product of FASB research on financial reporting by private and small public companies. A number of participants in those research efforts cited accounting and disclosure requirements that they believe should not apply to nonpublic enterprises, including the pro forma disclosures prescribed by Opinion 16. The Board has concluded that the costs of providing the pro forma disclosures prescribed by Opinion 16 generally exceed the benefits for the users of nonpublic company financial statements.
This Statement is effective for financial statements
for fiscal years beginning after December 15, 1983, with earlier
application permitted in financial statements that have not
previously been issued.