FASB Accounting Standards Codification : Business Combinations

Which of the following should be included in the acquisition cost of a piece of

Item 7.|  |MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS|  | |25|  |

ASC 820 requires that the measurement of fair value of assets acquired and liabilities assumed should be based on the

The requirements of the applicable financial reporting framework relevant to accounting estimates, including related disclosures

The estimates of ABC Company and all subsidiaries are thoroughly analyzed before their respective inclusion on the financial statement. If conditions warrant a change in accounting principle, the events surrounding the change are disclosed, and the effects of the changes in accounting principles are also disclosed. Although these instances are infrequent, full disclosure is practiced when they do occur. Our main areas of accounting estimates include estimates for intangible assets and trade receivables.

The purpose of this research paper is to summarize research on codification topic 410 based on the information found in different academic databases. The first part of the paper will focus on the FASB Codification database. The second part of the paper will compare and contrast three other databases on the same codification 410 within the RIA Checkpoint databases: AICPA: Auditing and Accounting Guides, SOX Reporter, and GAAP Practice Manual. A summary of benefits and issues with the searches of each database will also be discussed.

Entity-wide disclosures are required under Accounting Standards Codification (ASC) 280-10-50-40 through 280-10-50-42. The disclosures are required because every corporation does not report information in a similar fashion, and the disclosures would provide comparability of the financial statements among entities. For example, if a corporation uses a geographic approach in its financial statements, disclosing certain information about the products or services sold will make comparability to other companies much easier. The disclosures will also help with comparability within an entity if they decide to choose another method of reporting operating segments in the future. There are three types of entity-wide disclosures; products and services, geographic areas, and/or major customers. Every public company has to comply with the disclosures, even if the company has one reportable segment. The only exception to the entity-wide disclosures is if it is impractical to provide the information, such as it would be extremely costly to the corporation, or if the “internal reporting systems are not capable of gathering financial information by product or service by geographic area.” A disclosure should be made when entity-wide disclosures are impractical.

financial statements to comply with ASC 740-10 by completing the table that was provided and justify

There may be differences between the assigned values and the tax bases of the assets and liabilities recognized in a business combination accounted for as a purchase under APB Opinion No. 16, Business Combinations.

* Comments relating to the adequacy of disclosures, the actual descriptions of rate reconciliation items, deferred tax assets and liabilities, uncertain tax positions, timing of reversals, or expiration of net operating losses in various jurisdictions.

Before the issuance of pre-codification SFAS 160, “Noncontrolling interest in consolidation financial statements,” there were three alternatives that was considered by the FASB for the display of noncontrolling interest in the balance sheet that was consolidated. The three alternatives were: as a liability, as equity and finally in the mezzanine this is the area between the liability and the owners’ equity. One of the rules for the noncontrolling interest is that it is supposed to be presented in the consolidated statements of the financial position and this is within the equity and separate from the parent’ equity.

In this research, we will outline various concepts and definitions to business combinations and address some important issues such as reporting entity concept, determination of fair value of assets, nature and treatment of goodwill, fair value approach in determining the cost of business combinations. While doing this, we will keep in mind the major accounting practices

As a matter of fact, within the limitation of a short paper, this study aims to provide a critical review on the Accounting issues in Business combination under the requirement of Australian standards – or to be specific, under the conceptual framework provided by the Australian Accounting Standard Board (AASB.) Firstly, evaluation on the exclusions from the scope of AASB 3 is brought about, followed by the implications of the requirement to use the acquisition method of accounting for business combinations, the determination of fair value of assets, the reasons why fair value method is chosen in a business combination and lastly, a review on the nature and treatment of goodwill or bargain purchase from these particular transactions will be mentioned.

* To reassess the identification and measurement of the acquiree’s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the business combination if the acquirer’s interest in the net fair value of the items recognised exceeds the cost of the combination. Any excess remaining after that reassessment must be recognised by the acquirer immediately in profit or loss.

•IFRS 10 'Consolidated Financial Statements ' - identifies the concept of control as the determining factor in whether an entity should be included within consolidated financial statements;