FASB Marks convergence milestone with issuance of statements on business combinations and noncontrolling interests.

The Financial Accounting Standards Board in Dec. 2007 issued FASB Statements No. 141, Business Combinations (Revised 2007), and No. 160, Noncontrolling Interests in Consolidated Financial Statements. Effective for fiscal years beginning after Dec. 15, 2008, the standards will improve, simplify and converge internationally the accounting for business combinations and the reporting of noncontrolling interests in consolidated financial statements.

"The new standards represent the completion of the FASB's first major joint project with the International Accounting Standards Board, as well as a significant convergence milestone," states FASB member G. Michael Crooch. "These standards and the counterpart standards issued by the IASB will improve reporting while eliminating a source of some of the most significant and pervasive differences between international financial reporting standards and U.S. generally accepted accounting principles." The International Accounting Standards Board plans to issue its counterpart standards IFRS 3 (revised), Business Combinations, and IAS 27 (Revised), Consolidated and Separate Financial Statements, early this year.

SFAS 141 (R) improves reporting by creating greater consistency in the accounting and financial reporting of business combinations, resulting in more...