FASB ASC 805 – Defining a Business vs. A Group of Assets- And Why it Matters

The Financial Accounting Standards Board (FASB) recently issued new guidance with Accounting Standards Codification (ASC) Topic 805: Business Combinations that alters the definition of a “business” to assist entities with evaluating when a set of transferred assets and activities is a business. The revised definition should reduce the number of transactions that are accounted for as business combinations, where goodwill and other complex accounting issues come into play.  This course will highlight what differentiates a “business” from a “group of assets”, and why it is important from an accounting and financial reporting perspective.