Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

45   ASC 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

Step 1—Identify the acquirer

Step 2—Determine the acquisition date

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

Example of acquirer replacing acquiree awards without the obligation to do so

Example of acquirer replacement awards requiring no postcombination services exchanges for fully vested acquiree awards where the employees have rendered all required services by the acquisition date

Example of acquirer replacement awards requiring performance of postcombination services exchanged for acquiree awards for which all requisite services had been rendered by the acquiree's employees as of the acquisition date

Example of acquirer replacement awards requiring performance of postcombination services exchanged for acquiree ...