Wiley Practitioner's Guide to GAAP 2022

47ASC 805 BUSINESS COMBINATIONS

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
  • Overview
  • Techniques for Structuring Business Combinations
• Definitions of Terms
• Concepts, Rules, and Examples
  • Transactions and Events Accounted for as Business Combinations
  • Qualifying as a Business
  • Exhibit—Overview of the Process to Determine Whether a Transaction Is an Asset Acquisition or a Business Combination—Applying the Up-Front Screen
  • Single or Similar Asset Threshold
  • The Framework
  • Example—Scenario 1
  • Example—Scenario 2
  • Accounting for Business Combinations under the Acquisition Method
  • Step 1—Identify the Acquirer
  • Step 2—Determine the Acquisition Date
  • Example of Consideration of New Information Obtained during the Measurement Period
  • Step 3—Identify Assets and Liabilities Requiring Separate Accounting
  • Example of Settlement of Preexisting Contractual Supplier Relationship—Contract Unfavorable to Acquirer
  • Example of Settlement of Preexisting Contractual Supplier Relationship—Contract Favorable to Acquirer
  • Step 4—Classify or Designate Identifiable Assets Acquired and Liabilities Assumed
  • Step 5—Recognize and Measure the Identifiable Tangible and Intangible Assets Acquired and Liabilities Assumed
  • Private Company Alternative for Accounting for Identifiable Intangible Assets in a Business Combination
  • Operating Leases
  • Operating Lease Assets Owned by an Acquiree/Lessor
  • Assets with Uncertain Cash Flows
  • Assets the Acquirer Plans to Idle or to Use in a Manner That Is Not Their Highest and ...