Monday, June 21, 1999
A Q&A on FASB
In revisiting U.S. accounting rules that govern mergers and
acquisitions, the Financial Accounting Standards Board is preparing to propose
changes that would close off certain practices favorable to R&D-heavy companies
such as biotechs. Some industry watchers believe the moves will further cloud
a climate already unfavorable to acquisitions of small biotech companies, while
others believe that economically viable combinations will not be deterred.
Following is a list of questions and answers about the specific
changes FASB is contemplating, their potential impact on biotech and a timeline
for when to expect the issuance of final rules.