Convergence of Accounting Standards May Slow M&A Activity

June 3 - Seeking Alpha - Efforts to reconcile US and international accounting standards could contribute to a significant slowing of merger and acquisition activity, according to Deloitte.

When more than 1,850 executives were asked about the impact of Financial Accounting Standards Board Statement No. 141 [R], Business Combinations, 40 percent said that the revised standard would cause them to rethink deal strategy and/or impact planned deal activity, according to an online poll from Deloitte.

Statement 141 [R] is the first substantially converged accounting standard by the FASB and the International Accounting Standards Board. The rule will change how companies approach financial planning and reporting around mergers, acquisitions and ownership changes. Statement 141 [R] is effective for companies with fiscal years beginning after December 15, 2008. Read More.