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Self-Study Courses

Accounting for Business Combinations (Currently Unavailable)

4 CPE Credits $20.75/credit hour
★ ★ ★ ★ ☆ 4.8 (187 ratings)
This 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. Note that this course reflects changes issued through ASU No. 2017-01.
This course is excluded from the following subscription programs: Value Pass, Self-Study Package, Webinar Package, Self-Study & Webinar Package, and Firm Package.

Publication Date: August 2020

Topics Covered

  • Introduction
  • Definition of a Business
  • The Acquisition Method
  • Step 1: Identifying the Acquirer
  • Step 2: Determining the Acquisition Date
  • Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree
  • Business Combination Achieved in Stages
  • Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
  • Measurement Period
  • Subsequent Measurement
  • Financial Statement Disclosures
  • Illustrative Examples from SEC Filings
  • Reverse Acquisitions
  • Private Company Alternative
  • Income Tax Considerations
  • Asset Acquisition vs. Business Combination

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 principles and exceptions in the measurement of assets and liabilities of a business combination
  • 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 entities with respect to accounting for business combinations
  • Differentiate between measurement principles of business combinations and asset acquisitions

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Accounting (4 hours)

Program Prerequisites
None

Advance Preparation
None

Instructor

Kelen Camehl

Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".

Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.
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