ASC 805: Business Combination Accounting

Learning Objectives

• To review the ASC 805 guidance on accounting and reporting for business combinations.
• To analyze how to estimate the fair value of assets acquired and liabilities assumed.
• To review financial statement disclosures for business combinations which can be extensive, especially for larger transactions.
• To review the closing process.
• To identify presentation requirements.

Course Description

Did you realize that M&A activity has resulted in more than $10 TRILLION in domestic activity since 2013?

All the merger activities have put the accounting for business combinations under ASC 805 in the spotlight.

Are you struggling with accounting for business combinations under ASC 805?

If so, I have great news! In this online CPE webinar, we’ll walk you through the important requirements of ASC 805, as well as provide you with detailed in-depth training for business combination accounting.

Accounting for business combinations is complex and requires considering a number of areas. Whenever accountants face the prospect of a business combination, there will be many challenges to prepare for the deal and the accounting for it.

There are deal activities that are usually led by those outsides of finance, such as finding the right target, performing due diligence, setting the price, drafting a purchase agreement, and working with professionals to close the transaction.

FASB ASC 805, Business Combinations, is a specialized accounting area that has evolved over the years and continues to be the subject of simplification initiatives by FASB. It is complex and may require CPAs to face new issues and apply certain accounting principles for the first time.

This online continuing education course will help accountants better anticipate and prepare for the challenges in business combinations.

This online Accounting CPE webinar will explore some of the more complex issues that acquisitive entities are facing as they address the accounting and reporting for business combination transactions.

Major topics covered in this online Accounting CPE webinar:

• 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.
• Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase.
• Business Combination Achieved in Stages.
• Measurement Period.
• Subsequent Measurement.
• Financial Statement Disclosures.
• Illustrative Examples from SEC Filings.
• Asset Acquisition vs. Business Combination.

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.

Overview

• FASB: Why issue ASC 805?

  6 mins
• Allocation of assets and liabilities

  23 mins
• Highest and best use

  35 mins
• Fair value of intangible assets

  51 mins
• Substantive processes

  67 mins
• Measuring the cost of an Acquisition

  83 mins