When an entity (the buyer) takes control of another entity (the target), the fair value of the underlying exchange transaction is used to establish a totally new basis of accounting of the acquired entity for business combination purposes. Generally, goodwill and non-controlling interests result from acquisition transactions. 

Business combination accounting can be very complex, particularly because fair value measurement of acquired assets and assumed liabilities is generally required.  This course highlights the answers to the most common questions faced in the business combination process in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805: Business Combinations, including the proper calculation of goodwill.

Learning Objectives
  • Discover the basic principles in Accounting Standards Codification (ASC) Topic 805: Business Combinations that generally underlie business combination transactions.
  • Explore the primary four-step business combination model.
  • Identify initial recognition and measurement matters, including proper accounting of goodwill and non-controlling interests.
Last updated/reviewed: March 12, 2024
31 Reviews (81 ratings)

Reviews

5
Anonymous Author
Instructor was clear, concise and understandable. The slide presentation was to the point and did not stray from what the instructor presented. As an overview of the topic, I highly recommend. I would have liked this to be a longer course to provide more examples as I was trying to place this information in relation to my experiences. I plan on taking more courses by this instructor.
4
Anonymous Author
This course was a nice overview, but would have been better with more examples using dollar amounts. Both the slides and speaking were kind of hard to follow in a few places (eg, after repeated reference to non-controlling interest I got confused as to who was who in the transaction), but I still got the point overall.
5
Anonymous Author
Course provided a great overview of the business combinations model to be followed when there is a change in control of a legal entity. I appreciated the considerations placed on the steps in the process that come before determining the PPA of the purchase and what constitutes a change in control.
4
Anonymous Author
This training does a great job in providing a thorough overview. It touches on various situations that may come about during a business combination. The slides are wordy so if you're a visual learner, they may be difficult to follow.
3
Anonymous Author
The instructor is very knowledgeable about the subject matter and the course provides a good overall value. There appears to be a technical issue related to the functionality of the microphone, which can hopefully be resolved.
4
Anonymous Author
Great overview of business combinations. Would be great to see more around pushdown accounting, especially for startups that have private equity investors and unique implications around elimination of accumulated deficits.
4
Anonymous Author
Good overview of business combinations. Some of the topics in the second half of the presentation, along with the example with accounting entries, was very rushed and could have benefitted from extra time.
4
Member's Profile
This course is a good recap and overview of business combination and non controlling interest. The presenter could have used better slides to show ownership %s etc to categorize nci equity etc
4
Member's Profile
Nice overview and appreciated the examples. I think in general, it's helpful to use some real life examples or stories to frame the subject matter and create more excitement for the topic.
5
Member's Profile
This was straight to the point; business combinations accounting put in layman terms. It was exactly what I was looking for, a general, high-level overview of business combo accounting.
5
Anonymous Author
Very thorough overview of accounting for business combinations. Explained the fundamentals well and also the lesser likely scenarios and circumstances involved.
4
Member's Profile
Good, fairly detailed content. There were one or two concepts that I wish more time had been devoted to. This could have easily been a 1.5 or 2 hour course.
4
Member's Profile
It is a good course to refresh your memory about business combinations. For the first-time learners a longer and more detailed course would be better.
4
Anonymous Author
This is a good overview, but it would be helpful to add additional time with more accounting examples and make this a 2 or 3 hour CPE course.
5
Anonymous Author
I liked all the detail. She actually taught the mechanics of the accounting needed for business combinations and goodwill calculations.
5
Anonymous Author
This session is a great overview of ASC805 for anyone new to ASC805 and a review for someone who has worked on business combination.
4
Member's Profile
Good overview of business combination but practical examples for measurement period adjustment could be more useful
5
Member's Profile
I enjoyed this course and there is no doubt that Jennifer Louis is an expert with accounting for business combinations.
5
Anonymous Author
This was a clearly laid out presentation and the discussions and examples presented were great for practical application.
3
Anonymous Author
Very quick overview of the process. I am in the process of a business combination, so it helped as a refresher course.
4
Anonymous Author
good course for all accounting professional to take; instructor was very clear and concise about the concepts
4
Member's Profile
This is a good overview of the concepts. Not a lot of detailed examples, but well put together text.
4
Anonymous Author
Good overview of business combinations. Serves its purpose as an introduction, leaves open nuances.
5
Member's Profile
good ***********************************************************************************
4
Anonymous Author
I enjoyed this class and the detail that was provided by the notes and presentation.
4
Member's Profile
Very good one hour course on biz combinations. Covered a lot of ground in an hour
5
Member's Profile
Fantastic job of presenting the material in a clear and understandable manner.
5
Anonymous Author
Great course. Very easy to follow and well taught by the professor.
4
Anonymous Author
Met what I needed - quick overview of business combinations
3
Member's Profile
Helpful refresher course but not extremely detailed.
5
Anonymous Author
Good coverage of key considerations in just an hour
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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 An Overview of the Business Combination Process, Including Calculating Goodwill1:15
  What is a Business Combination?10:27
  Other Matters Not Covered By This Course3:55
  Four Steps in Accounting For a Business Combination12:04
  More About Step 3: Recognize and Measure Assets and Liabilities7:14
  More About Step 4: Recognize and Measure Goodwill or Bargain Gain4:23
  Consideration Transferred4:42
  Non-Controlling Interest7:36
  Measurement Period Adjustments4:32
CONTINUOUS PLAY
  An Overview of the Business Combination Process, Including Calculating Goodwill56:07
SUPPORTING MATERIAL
  Slides: The Basics of Accounting for Equity Investments in EntitiesPDF
  The Basics of Accounting for Equity Investments in Entities Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam