News Article - 07 January 2009
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The International Accounting Standards Board (IASB) has announced that companies must reveal the fees paid to advisers on mergers and acquisitions (M&As).

Reported in Accountancy Age magazine, a number of firms have voiced their concern over the move, claiming it will seriously reduce accountancy profits.

Ken Lever, chairman of The Hundred Group of FD's financial reporting committee, remarked: "The new accounting treatment does not really reflect the way in which an investment will be appraised."

According to the IASB, the adviser fee's inclusion in profit and loss reports will control costs, increase transparency and high standards of business reporting.

"The board did not accept that fees paid in relation to an acquisition are an asset or part of an asset," commented Alan Teixeira, senior project manager at the IASB.

In related news, the IASB has developed a set of guidelines to be applied to financial statements issued under both International Financial Reporting Standards and Generally Accepted Accounting Principles.

It claims the standards allow more flexibility in M&A accounting.

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