Accounting for Business Combinations
Author: Kelen Camehl
| CPE Credit: |
4 hours for CPAs |
This course provides an in-depth overview of the accounting and reporting requirements with respect to business combinations as prescribed by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations. The overall objective of the guidance included within ASC 805 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects. Note that this course reflects changes issued through ASU No. 2017-01.
This course is excluded from the following subscription programs:
Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.
Publication Date: August 2020
Topics Covered
- Introduction
- Definition of a Business
- The Acquisition Method
- Step 1: Identifying the Acquirer
- Step 2: Determining the Acquisition Date
- Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree
- Business Combination Achieved in Stages
- Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
- Measurement Period
- Subsequent Measurement
- Financial Statement Disclosures
- Illustrative Examples from SEC Filings
- Reverse Acquisitions
- Private Company Alternative
- Income Tax Considerations
- Asset Acquisition vs. Business Combination
Learning Objectives
- Identify the definition of a business as it relates to a business combination transaction
- List the steps involved in the acquisition method
- Identify the acquisition date for a business combination
- Recognize principles and exceptions in the measurement of assets and liabilities of a business combination
- Differentiate between the various categories of intangible assets
- Recognize how to measure goodwill and gains from bargain purchases
- Identify the measurement period for business combinations
- Recognize financial statement disclosures related to business combinations
- Identify the relief afforded to private entities with respect to accounting for business combinations
- Differentiate between measurement principles of business combinations and asset acquisitions
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (4 hours)
Program Prerequisites
None
Advance Preparation
None
