Goodwill is an intangible asset generated from the acquisition of one entity by another.  It is the difference between the price paid by the acquirer for a business, and the amount that cannot be assigned to any individually-identified assets and liabilities acquired in the transaction.  The accounting for goodwill can range from simple to complex. 

This course describes some of the most common issues related to the initial measurement and subsequent accounting for goodwill and acquisition-related expenses in a business combination.

Learning Objectives
  • Discover how to initially calculate goodwill under U.S. generally accepted accounting principles (GAAP) Accounting Standards Codification (ASC) Topic 805: Business Combinations, including simplifications available to nonpublic business entities.
  • Explore how to initially account for the buyer’s acquisition-related costs (such as legal, valuation, and other fees), as well as any seller’s costs paid for by the buyer.
  • Recognize the subsequent measurement and reporting of goodwill and acquisition-related costs, including impairment considerations.
Last updated/reviewed: March 26, 2024
19 Reviews (70 ratings)

Reviews

5
Member's Profile
Good concise overview of Accounting for Goodwill in Business Combinations, including Bargain Purchase Gain scenarios.
5
Anonymous Author
The course provides a great overview of the goodwill accounting as part of an acquisition that falls in accordance with ASC 805. The course also provided an overview of allocating goodwill to non-controlling interest which is something that I have not seen thus far. It will be incorporated as an item I will be on the lookout for when accounting for future business combinations.
5
Anonymous Author
This course provided a great overview of the steps taken to recognize goodwill in a business combination. I really appreciated the extra complexities associated when a business combination includes a non-controlling interest portion.
5
Anonymous Author
The presenter of this FASB ASC 805 topic is well spoken, clear and precise. Jennifer Louis consistently provides a presentation document and support that is well thought out and enjoyable to listen to, even though the topic is dry.
4
Member's Profile
The course gives an overview of Goodwill measurement in business combination . Some numerical examples on how to calculate impairment would have made impairment portion more easy to grasp but overall presentation was nice.
5
Member's Profile
I really enjoyed the update on the treatment of valuing goodwill and the recent FASB updates. I really enjoyed Jennifer Louis lecture due to her clarity and technical expertise.
4
Anonymous Author
Despite of the complexity of the topic, the course presents and disects the concepts effectively. The instructor is very knowledgeable on the subject matter.
5
Anonymous Author
Very informative and quick overview of a complex topic. This helped but I will need a more in-depth course to fully understand it.
5
Anonymous Author
Topics are well-organized and explained clearly, making practical application simple and adding value to the course overall.
5
Anonymous Author
What a great course to introduce you to accounting principles related to good will and the sale of a business.
5
Anonymous Author
A wealth of information for a 1 hour course. It reviews the four step models of recognizing goodwill.
5
Anonymous Author
Great course. Found it to be very informative on the topic at hand and would recommend to all.
4
Anonymous Author
This course provided a good overview of accounting for goodwill in a business combination.
3
Anonymous Author
This was a great course regarding Goodwill impairment and non controlling interest.
4
Anonymous Author
very good course. the content was very complete and easy to understand
5
Member's Profile
Great summary of how to approach valuation of an acquired business.
5
Member's Profile
Nice overview. Good job on explaining the concepts clearly.
4
Anonymous Author
Good overview of current standard and new pronouncements
5
Anonymous Author
Really informative class and good overall presentation
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Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Accounting for Goodwill in Business Combinations1:07
  The Four Step Model - Overview1:26
  Initial Recognition and Measurement - Assets Acquired5:30
  Intangible Asset Special Considerations5:14
  Initial Recognition and Measurement - Liabilities Assumed7:15
  Costs to Restructure the Acquired Company2:51
  Exceptions to Fair Value Recognition and Measurement Principles4:58
  The Four Step Model - Recognizing Goodwill or Bargain Purchase Gain9:49
  Subsequent Measurement - Impairment of Goodwill13:09
  Recent FASB Activity6:17
CONTINUOUS PLAY
  Accounting for Goodwill in Business Combinations57:36
SUPPORTING MATERIAL
  Slides: Accounting for Goodwill in Business Combinations per ASC 805PDF
  Accounting for Goodwill in Business Combinations per ASC 805 Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam