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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.

Learning Objectives

  • Recognize what characteristics differentiate a “business” from a mere “group of assets”.
  • Explore the implications from an accounting and financial reporting perspective between acquiring a “business” compared to a “group of assets”.
  • Discover the recent enhancements to defining a “business” in accordance with U.S. generally accepted accounting principles (GAAP) in Accounting Standards Codification (ASC) Topic 805: Business Combinations.
Last updated/reviewed: April 27, 2018

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:03Introduction to Defining a Business per U.S. GAAP vs. A Group of Assets - And Why it Matters
  7:09Recent Change to U.S. GAAP
  3:02Most Recent Definition of a Business
  7:46Minimum Elements of a Business
  12:00New Asset Screen
  11:19What to Include in the "Set" of Activities?
  2:21Impact of Asset Acquisitions
  5:05Impact on Asset Disposals
CONTINUOUS PLAY
  49:45Defining a Business per U.S. GAAP vs. A Group of Assets - And Why it Matters
SUPPORTING MATERIAL
  PDFSlides: ASC 805 - Defining a Business vs. A Group of Assets - And Why it Matters
  PDFASC 805 - Defining a Business vs. A Group of Assets - And Why it Matters Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM