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c.

That is, the acquirer shall not adjust the accounting for prior business combinations for previously recognized changes in acquired tax uncertainties or previously recognized changes in the valuation allowance for acquired deferred tax assets. However, after the effective date of that Statement:

1.

The acquirer shall recognize, as an adjustment to income tax expense (or a direct adjustment to contributed capital in

accordance with paragraph 740-10-45-20), changes valuation allowance for acquired deferred tax assets.

in

the

2.

An

The acquirer shall recognize changes in the acquired income tax positions in accordance with paragraph 805-740-45-4. entity, such as a mutual entity, that has not yet applied FASB

Statement No. 141, Business Combinations, and FASB Statement No. 147, Acquisitions of Certain Financial Institutions, and that had one or more business combinations that were accounted for using the purchase method shall apply the transition provisions in (c)(1) through (c)(5) of this paragraph. An entity that has not yet applied FASB Statement No. 142, Goodwill and Other Intangible Assets, in its entirety shall apply that Statement in its entirety at the same time that it applies FASB Statement No. 141 (Revised 2007).

1.

Mutual entities were not required to adopt FASB Statement No. 141 or FASB Statement No. 147 until the Financial Accounting Standards Board (FASB) issued interpretative guidance for applying the purchase method to those transactions. FASB Statement No. 141 (Revised 2007) provides that interpretative guidance. Before the effective date of that Statement, mutual

entities accounted for business combinations as follows:

i.

Combinations

between

mutual

entities

were

accounted

for

2.

using APB Opinion No. 16, Business Combinations, using either the purchase method or the pooling-of-interests method. Combinations between mutual entities that are financial institutions were accounted for using FASB Statement No. 72, Accounting for Certain Acquisitions of Banking or Thrift Institutions, using the purchase method. FASB Statement No. 72 used the term {italic}financial institution{italic} to mean all or part of a commercial bank, a savings and loan association, a credit union, or other depository institution having assets and liabilities of the same types as those institutions. FASB Statements No. 141 and No. 147 provided the transition provisions for an entity that had a business combination accounted for using the purchase method in accordance with APB Opinion No. 16 or FASB Statement No. 72. Accordingly, upon adoption of FASB Statement No. 141 (Revised 2007), a mutual entity that had a business combination accounted for using the purchase method needs to apply transition provisions similar to those that were in ii.

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