Accounting: New Trouble for Mergers

Though the trustbusters are tough, money is tight and stock prices have crashed, the corporate merger movement is far from crippled. There were 2,552 merger announcements in this year's first half, only 9% fewer than during the first six months of 1969. A new obstacle to future mergers, however, has been raised by the top rule-making body of the nation's accounting profession, the Accounting Principles Board.

The 18-man board has adopted some controversial proposals designed to make it difficult for merging companies to show an instant increase in their profits by the stroke of an accountant's pen. The most...

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