Summary of Statement No. 72

Accounting for Certain Acquisitions of Banking or Thrift Institutions—an amendment of APB Opinion No. 17, an interpretation of APB Opinions 16 and 17, and an amendment of FASB Interpretation No. 9 (Issued 2/83)


This Statement amends APB Opinion No. 17, Intangible Assets, with regard to the amortization of the unidentifiable intangible asset (commonly referred to as goodwill) recognized in certain business combinations accounted for by the purchase method. If, and to the extent that, the fair value of liabilities assumed exceeds the fair value of identifiable assets acquired in the acquisition of a banking or thrift institution, the unidentifiable intangible asset recognized generally shall be amortized to expense by the interest method over a period no longer than the discount on the long-term interest-bearing assets acquired is to be recognized as interest income. This Statement also specifies that financial assistance granted to an enterprise by a regulatory authority in connection with a business combination shall be accounted for as part of the combination if receipt of the assistance is probable and the amount is reasonably estimable.