Mastering M and A Accounting - Deep Dive into ASC 805 (Course Id 2532)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals interested in mastering accounting for business combinations under ASC 805.

• What is this course about or what problem does this course solve?
  This course provides a deep dive into the accounting and reporting requirements for business combinations as prescribed by ASC Topic 805, helping learners understand how to accurately report mergers and acquisitions.

• How can the knowledge from this course be used?
  Learners can apply the knowledge from this course to identify acquisition details, measure goodwill and intangible assets, and ensure proper disclosure in financial statements related to business combinations.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding ASC 805 is crucial for preparing accurate financial reports during mergers and acquisitions, which is a critical aspect of financial transparency and compliance for CPAs and accountants.

• When is this course relevant or timely?
  This course is especially relevant for professionals engaged in or advising on M&A activities and was recently updated in April 2025, reflecting current standards and practices.

• How is a course like this consumed or used?
  The course is delivered via QAS self-study format, consisting of text-based content with review questions and a final exam, and can be completed at the learner’s own pace.

This course provides an in-depth overview of the accounting and reporting requirements with respect to business combinations prescribed by 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.    

NASBA QAS - Text - NASBA Registry - 2532

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 assets and liabilities of a business combination are recorded/measured
• Differentiate between the various categories of intangible assets
• 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
• Identify the relief afforded to private and not-for-profit entities for business combinations

Chapter 1 - Mastering M and A Accounting - Deep Dive into ASC 805

Course Learning Objectives

Course Overview

Introduction

Definition of a Business

Illustrative Examples – Business or Not?

Example #1 – Acquisition of Real Estate

Example #2 – Acquisition of a Drug Candidate

Example #3 – Acquisition of a Television Station

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

Financial Statement Disclosures

Reverse Acquisitions

Private & Not-For-Profit Accounting Alternatives

Conclusion

Review Questions

Glossary of Key Terms