FASB 141R causes executives to rethink deal strategy.

• Author: M. Heffes, Ellen
• Position: Financial reporting - Financial Accounting Standards Board - Impact of Financial Accounting Standard on deal strategy - Brief article

When Deloitte Financial Advisory Services LLP asked 1,850 executives about the impact of Financial Accounting Standard No. 141R, Business Combinations (FAS 141R), 40 percent said that the revised standard would cause them to rethink deal strategy and/or impact planned deal activity.

"While the credit crunch has slowed down the velocity of transactions in the market. our clients are aware that Statement 141 R could also have a significant impact on deal flow and deal-making," said Stamos Nicholas, Deloitte's national Business Valuation leader.

"The finance and accounting, business development, tax and legal departments of companies are working to understand the implications of Statement 141 R, as the processes for how a deal is consummated and reported will require significant preliminary and ongoing...