Accounting for Business Combinations (2 hour version) (Course Id 1703)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, or finance professionals seeking technical knowledge in accounting for business combinations.

• What is this course about or what problem does this course solve?
  The course provides an in-depth overview of accounting and reporting requirements for business combinations as prescribed by FASB ASC Topic 805, aiming to enhance the quality and comparability of financial information.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to accurately account for business combinations, including identifying the acquirer, determining the acquisition date, measuring goodwill, and preparing related financial disclosures.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding ASC 805 is essential for professionals involved in mergers and acquisitions, as it ensures compliance with accounting standards and supports accurate financial reporting.

• When is this course relevant or timely?
  This course is especially relevant when involved in or advising on business combinations, and the 2024 revision ensures the material reflects the latest standards and practices.

• How is a course like this consumed or used?
  The course is delivered as a NASBA QAS self-study text, allowing learners to study at their own pace and complete a final exam online to earn CPE credit.

This CPA course provides an in-depth overview of the accounting and reporting requirements with respect to business combinations as prescribed by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations.  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.   

NASBA QAS - Text - NASBA Registry - 1703

Course Learning Objectives

• Identify the definition of a business as it relates to a business combination transaction
• List the steps involved in the acquisition method
• Identify the acquisition date for a business combination
• Recognize how to measure goodwill and gains from bargain purchases
• Identify the measurement period for business combinations
• Recognize financial statement disclosures related to business combinations

Chapter 1 - Accounting for Business Combinations

Course Learning Objectives

Course Overview

Introduction

Definition of a Business

The Acquisition Method

Step 1: Identifying the Acquirer

Step 2: Determining the Acquisition Date

Review Questions

Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree

Review Questions

Business Combination Achieved in Stages

Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase

Measurement Period

Subsequent Measurement

Review Questions

Financial Statement Disclosures

Reverse Acquisitions

Income Tax Considerations

Asset Acquisition vs. Business Combination

Review Questions

Glossary of Key Terms