Accountants are poised to gain greater clarity when deciding whether businesses are under common control—a distinction that is increasingly relevant as private equity firms grow more popular and complex.
The Financial Accounting Standards Board added a project to its technical agenda Wednesday focused on providing a definition of “common control” of businesses—a term used throughout the accounting rulebook but not defined in its glossary. The US board also opted to do more research into potential gaps in accounting for business consolidations, but it chose not to pursue changes to guidance that some investors had sought to clarify in oil and ...