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.
Publication Date: April 2026
Topics Covered
- 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
- Step 3: Recognizing/Measuring Identifiable Assets & Liabilities
- Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase
- Measurement Period
- Business Combination Achieved in Stages
- Subsequent Measurement
- Financial Statement Disclosures
- Private & Not-for-Profit Accounting Alternatives
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
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.