Merger Accounting


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.