Description

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.