M-and-A Accounting - A Quick Guide to ASC 805 (Course Id 2525)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), especially CPAs and accounting professionals seeking to understand business combination accounting under ASC 805.

• What is this course about or what problem does this course solve?
  The course provides a high-level overview of accounting and reporting requirements for business combinations under ASC Topic 805, aiming to improve the relevance, reliability, and comparability of related financial statements.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to identify, measure, and report on business combination transactions, including recognition of assets, liabilities, goodwill, and gains from bargain purchases.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding ASC 805 is essential for ensuring accurate financial reporting in mergers and acquisitions, which is a key responsibility for CPAs and accountants involved in such transactions.

• When is this course relevant or timely?
  Released in 2025 and offering an up-to-date overview of ASC 805, this course is especially relevant for professionals dealing with current or upcoming business combinations.

• How is a course like this consumed or used?
  This self-study, text-based course is delivered under the NASBA QAS format, requiring completion of review questions and a final exam with a minimum passing score of 70% to earn 2.0 CPE credits.

This course provides a high-level overview of the accounting and reporting requirements for business combinations under ASC Topic 805. The guidance aims to enhance the relevance, reliability, and comparability of financial information related to business combinations and their impact on a reporting entity’s financial statements.   

NASBA QAS - Text - NASBA Registry - 2525

Course Learning Objectives

• Identify the definition of a business as it relates to a business combination transaction
• Recognize steps involved in the acquisition method
• Recognize how assets and liabilities of a business combination are recorded/measured
• Identify how to measure goodwill and gains from bargain purchases
• Identify the measurement period for business combinations
• Recognize the relief afforded to private and not-for-profit entities for business combinations

Chapter 1 - M-and-A Accounting - A Quick Guide to ASC 805

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/Measuring Identifiable Assets & Liabilities

Review Questions

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

Measurement Period

Business Combination Achieved in Stages

Subsequent Measurement

Reverse Acquisitions

Private & Not-For-Profit Accounting Alternatives

Conclusion

Review Questions

Glossary of Key Terms