Wall Street Proposes its own M&A Rules : Firms Come Up with a Compromise Accounting Solution

In an effort to salvage post-M&A deal earnings, two major Wall Street firms have come up with an M&A accounting proposal that they hope will satisfy the Financial Accounting Standards Board. And while FASB likes in part what its sees thus far, there are obstacles to overcome, sources said. Representatives from Morgan Stanley Dean Witter and Goldman Sachs lobbied U.S. regulators last month to adopt a proposal that would prevent corporate earnings from dissipating over time by M&A related charges, as would happen under the current FASB proposal that has much of the M&A community up in arms.