Accounting for business combinations
In accounting and reporting for transactions that represent business combinations accounted for using the acquisition method, FASB Accounting Standards Codification (FASB ASC) 805, Business Combinations, applies.
However, this guidance for business combinations does not apply to combinations between entities or businesses under common control, according to FASB ASC 805-10-15-4(c). Particular guidance associated with common control transactions is included separately within the business combinations guidance FASB ASC 805-50.
Also in this issue:
- Financial statement fraud
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