Mastering M&A Accounting - Deep Dive into ASC 805

Author: Kelen Camehl

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