Accounting for Business Combinations (Video) (Course Id 1945)

• Who is this course for?
  This course is for CPAs, accountants, auditors, and financial reporting professionals seeking CPE credit who need to understand the accounting and reporting requirements for business combinations under U.S. GAAP.

• What is this course about or what problem does this course solve?
  It explains the FASB ASC 805 guidance on business combinations, clarifying how to account for acquisitions, measure goodwill, recognize bargain purchase gains, and meet disclosure requirements.

• How can the knowledge from this course be used?
  Participants can apply the acquisition method correctly, determine acquisition dates, measure and record assets and liabilities, and ensure compliance with U.S. GAAP financial reporting standards.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Properly accounting for business combinations ensures transparent and comparable financial reporting, which is essential for investor confidence, regulatory compliance, and audit readiness.

• When is this course relevant or timely?
  It is relevant whenever a business acquisition occurs or is being planned, especially in periods of increased merger and acquisition activity.

• How is a course like this consumed or used?
  The course is delivered as a NASBA QAS-approved self-study video with text, review questions, and a final exam, allowing participants to complete it online for CPE credit.

This course provides an 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.  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.

Video - NASBA QAS - Text - NASBA Registry - 1945

Course Learning Objectives

• Identify the definition of a business
• 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

Chapter 1 Review Questions

Glossary of Key Terms