Financial accounting standards board Research Paper

pecuniary accounting standards board - Research Paper ExampleHowever, after the approval of the amendment, entities going through mergers and acquisitions are obliged by the Financial Accounting Standards Board to implement this change in their financial reporting. This is to ensure consistency in the activity of these standards among the entities affected. Accounting for any combination taking rear end after the approval date must be in accordance with the provisions of this standards. In addition, full implementation must be observed, that is, once an entity decides to physical exercise these standards, it must be applied fully, ensuring compliance with every paragraph of the standard and not partial compliance (FASB, p14).The board may permit early application to implement the standard by entities undergoing combinations. They can simply apply to the board if they are certain about using the standard. The board may however admit to accept or reject such applications. When th e board is sufficiently satisfied that the applicants can implement this standard, it grants the permission for an early implementation. When such permission is granted, the applicant must comply with the requirements of each provision of the standard as partial compliance is prohibited. They must ensure recognition, measurement, and disclosure are as per the requirements of the standard (FASB, p18).The proposed amendment would result in more relevant information as compared to the current standard on disclosure of identifiable intangible assets. Firstly, this standard limits the separate recognition to non-cancelable contractual toll and other legal rights.