United States

ASC amendments pursuant to Staff Accounting Bulletin No. 115


On November 18, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-17, Business Combinations (Topic 805): Pushdown Accounting, which provided common pushdown accounting guidance for both public and private companies. Simultaneously, the staff of the SEC released Staff Accounting Bulletin No. 115, which rescinded Staff Accounting Bulletin (SAB) Topic 5.J., New Basis of Accounting Required in Certain Circumstances, (the SEC staff’s pre-existing guidance on pushdown accounting). On May 14, 2015, the FASB issued ASU 2015-08, Business Combinations (Topic 805): Pushdown Accounting – Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115, to remove the text of SAB Topic 5.J. and related references from its Accounting Standards Codification (ASC).

For further information on ASU 2014-17 see our article, Pushdown accounting: Out with the old, in with the new.