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Discussion
In 2008, the IASB and FASB are working on a joint project to develop a single standard for business combinations with the objective of having the same standard whether an organization adopts IFRS or U.S. GAAP. Currently, FASB Statement 141 deals with business combinations in the United States, disallowing the pooling method, requiring all business combinations to be accounted for using the purchase method. Financial reporting for business combinations can be substantially different depending on the standard that has been adopted within a country.
For this assignment, conduct research to locate the business combination standard that is used in the country that you have chosen for your course project. In a 2-3 page paper, explain the standard that is currently used, compare the standard to FASB statement 141, and determine the impact (if any) that the differences in standards would have on a foreign company from your country that wanted to list on one of the U.S. exchanges. Cite all references used in your research.
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