Business Combinations
Liberty University
November 6, 2011

Abstract
This paper discusses the business combinations on both the national level in the United States and the international level around the globe. It examines the Financial Accounting Standards Board, the International Accounting Standards Board, the differences between the two boards, and the joint conceptual framework project that is in the process of being formulated. The history of the FASB and the different responsibilities it takes on itself regarding the conceptual framework and other issues are mentioned in the research results. The IASB and many of the elements of financial statements are defined within the paper. The joint project between the FASB and IASB is researched and the process it is currently going through on its way to completion is written out in detail. The research paper covers all of these topics for the purpose of informing and educating others.

The underlying principles and objectives of financial accounting and reporting that guide and direct the Financial Accounting Standards Board (FASB) in setting Generally Accepted Accounting Principles (GAAP) are collectively referred to as the conceptual framework. Although the conceptual framework is not regulatory by nature, it does act as the basis for the laws and rules that are set. It is in place in order to assist in the creation of consistent standards across the board. It lays out the objectives of financial accounting and reporting so that changes to GAAP will be sure to further those stated objectives. The seven Statements of Financial Accounting Concepts (SFACs) issued by the FASB comprise the conceptual framework in written form. Currently, the FASB is partnering with the International Accounting Standards Board (IASB) to create a joint conceptual framework that will be applied internationally. Because of its importance