Project Updates

Business Combinations: Applying the Acquisition Method—Joint Project of the IASB and FASB

Project Summary

Last Updated: January 14, 2008 (Updated sections are indicated with an asterisk *)


The FASB completed its project on business combinations: applying the acquisition method in December 2007 with the issuance of FASB Statements No. 141 (Revised 2007), Business Combinations [Download], and No. 160, Noncontrolling Interests in Consolidated Financial Statements [Download]

The IASB completed its business combinations project in January 2008 with the issuance of a revised version of IFRS 3 Business Combinations and an amended version of IAS 27 Consolidated and Separate Financial Statements. See [] for those IFRSs.


This project was a joint project between the FASB and the IASB and was the second phase of their projects on business combinations. In this phase of the project, the Boards reconsidered the existing guidance for applying the purchase method of accounting for business combinations (now called the acquisition method).

The objectives of the project were to improve and simplify the accounting for business combinations and to develop a single high-quality standard of accounting for business combinations that could be used for both domestic and cross-border financial reporting.


Alan Teixeira
IASB Senior Project Manager

Stefanie Tamulis
FASB Project Manager

Marta Vessels
FASB Assistant Project Manager