Instructor for this course

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: November 21, 2019

6 Reviews (27 ratings)Reviews

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
Anonymous Author
Very thorough overview of accounting for business combinations. Explained the fundamentals well and also the lesser likely scenarios and circumstances involved.
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.
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.
Anonymous Author
good course for all accounting professional to take; instructor was very clear and concise about the concepts
Anonymous Author
Good overview of business combinations. Serves its purpose as an introduction, leaves open nuances.


Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
  1:15Introduction to An Overview of the Business Combination Process, Including Calculating Goodwill
  10:27What is a Business Combination?
  3:55Other Matters Not Covered By This Course
  12:04Four Steps in Accounting For a Business Combination
  7:14More About Step 3: Recognize and Measure Assets and Liabilities
  4:23More About Step 4: Recognize and Measure Goodwill or Bargain Gain
  4:42Consideration Transferred
  7:36Non-Controlling Interest
  4:32Measurement Period Adjustments
  56:07An Overview of the Business Combination Process, Including Calculating Goodwill
  PDFSlides: The Basics of Accounting for Equity Investments in Entities
  PDFThe Basics of Accounting for Equity Investments in Entities Glossary/Index