Wiley Practitioner's Guide to GAAP 2022

APPENDIX A DEFINITIONS OF TERMS

(Note: Items with an asterisk are pending implementation of ASU 2016‐02, Leases)

Acquiree  Topics 805, 840, 842, 958. The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not‐for‐profit acquirer obtains control of in an acquisition by a not‐for‐profit entity.

Acquirer  Topics 805, 842, 954, 958. The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer.

Acquisition by a Not‐for‐Profit Entity  Topics 270, 350, 420, 450, 460, 730, 740, 805, 815, 820, 840, 842, 954, 958, 985. A transaction or other event in which a not‐for‐profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not‐for‐profit entity, the term “business combination” has the same meaning as this term has for a not‐for‐profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not‐for‐ profit entities.

Acquisition Date  Topics 450, 740, 805, 954, 958. The date on which the acquirer obtains control of the acquiree.

Acquisition, Development, and Construction Arrangements  Topics 310, ...