Wiley GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles 2015

Chapter 45ASC 805 BUSINESS COMBINATIONS

PERSPECTIVE AND ISSUES

   Subtopics

   Scope and Scope Exceptions

   Overview

DEFINITIONS OF TERMS

CONCEPTS, RULES, AND EXAMPLES

   Transactions and Events Accounted for as Business Combinations

   Qualifying as a Business

   Techniques for Structuring Business Combinations

   Accounting for Business Combinations under the Acquisition Method

   Application Guidance

   Push-Down Accounting

   Accounting for Leveraged Buyouts

   Reverse Acquisitions

   Spin-offs and Reverse Spin-offs

   Non-Sub Subsidiaries

PERSPECTIVE AND ISSUES

Subtopics

ASC 805, Business Combinations, consists of six subtopics:

• ASC 805-10, Overall, which provides guidance on transactions accounted for under the acquisition method
• ASC 852-20, Identifiable Assets and Liabilities, and Any Noncontrolling Interest, deals with specific aspects of the acquisition method
• ASC 805-30, Goodwill or Gain from Bargain Purchase, Including Consideration Transferred, like ASC 805-20, 805-30 deals with specific aspects of the acquisition method
• ASC 805-40, Reverse Acquisitions, provides guidance on business combinations that are reverse acquisitions
• ASC 805-50, Related Issue, which offers guidance two items that are similar, but not the same, as a business combination: acquisition of assets and transactions between entities under common control
• ASC 805-740, Income Taxes, which provides “incremental guidance” on business combinations and on acquisitions by a not-for-profit entity.