Business Combinations: Overview of ASC 805

Accounting for business combinations under ASC 805 can be quite complex! Do you know the difference between a business combination and an asset acquisition? And why it matters? The answer to this question is important because the accounting is totally different! This Overview of ASC 805 CPE course (1.5 CPE) explores everything you need to know to get a basic understanding of business combination accounting under U.S. GAAP.

In this online course we begin with the definition of a business and whether a transaction falls within the scope of ASC 805. We then provide you with an overview of the 4-step acquisition method set out in ASC 805, including whether assets and liabilities acquired should be recognized apart from goodwill and, if so, how they should be measured. 

Topics covered in this Overview of ASC 805 CPE course include: 

• Introduction to business combinations and differences between a business combination and an asset acquisition
• Scope of ASC 805
• Overview of the acquisition method under U.S. GAAP

If you’re new to the accounting for or auditing of business combinations under U.S. GAAP, this course is a great place to start! This is the first course in our three-part business combinations training series, so make sure to check out the complete collection, linked below.

Interested in group discounts for your team? Contact us to learn more.

 By the end of this course, you should be able to: 

• Identify transactions within the scope of ASC 805 
• Determine whether an acquired set of activities meets the definition of a business 
• Recognize the components of the four-step acquisition method when accounting for a business combination 
• Indicate when assets and liabilities should be recognized apart from goodwill and how they should be measured