Summary of Statement No. 79

Elimination of Certain Disclosures for Business Combinations by Nonpublic Enterprises—an amendment of APB Opinion No. 16 (Issued 2/84)


This Statement amends APB Opinion No. 16, Business Combinations, to eliminate the requirement for nonpublic enterprises to disclose pro forma results of operations for business combinations accounted for by the purchase method. Disclosure requirements for public enterprises are not changed by this Statement.

This Statement is a product of FASB research on financial reporting by private and small public companies. A number of participants in those research efforts cited accounting and disclosure requirements that they believe should not apply to nonpublic enterprises, including the pro forma disclosures prescribed by Opinion 16. The Board has concluded that the costs of providing the pro forma disclosures prescribed by Opinion 16 generally exceed the benefits for the users of nonpublic company financial statements.

This Statement is effective for financial statements for fiscal years beginning after December 15, 1983, with earlier application permitted in financial statements that have not previously been issued.