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: January 23, 2023
5 Reviews (32 ratings)

Reviews

5
Anonymous Author
The instructor provides a great overview of the main change in ASC 805 related to the ASU that revises the definition of a business. The instructor provides examples that will help accountants apply to their acquisitions.
5
Anonymous Author
This course communicates a clear process for distinguishing between an asset purchase, and a business combination - very helpful for accounting professionals.
5
Member's Profile
Concise course on a straightforward topic. I appreciated that it had a narrow focus and kept on topic. The examples used were very helpful.
5
Member's Profile
Very helpful in understanding acquiring a business versus a group of assets.
5
Anonymous Author
Good introduction into topic. One Big 4 firm has its own book on it.
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 Defining a Business per U.S. GAAP vs. A Group of Assets - And Why it Matters1:03
  Recent Change to U.S. GAAP7:09
  Most Recent Definition of a Business3:02
  Minimum Elements of a Business7:46
  New Asset Screen12:00
  What to Include in the "Set" of Activities?11:19
  Impact of Asset Acquisitions2:21
  Impact on Asset Disposals5:05
CONTINUOUS PLAY
  Defining a Business per U.S. GAAP vs. A Group of Assets - And Why it Matters 49:45
SUPPORTING MATERIAL
  Slides: ASC 805 - Defining a Business vs. A Group of Assets - And Why it MattersPDF
  ASC 805 - Defining a Business vs. A Group of Assets - And Why it Matters Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam