{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/740/805/#00-status","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"740","topic_title":"Income Taxes","subtopic":"740-805","subtopic_title":"Business Combinations","section":{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"740-805-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL6798141-161516\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquiree\" class=\"term\" title=\"The business or businesses that the acquirer obtains control of in a business combination. This term also includes a nonprofit activity or business that a not-for-profit acquirer obtains control of in an acquisition by a not-for-profit entity.\"><span>Acquiree</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquirer\" class=\"term\" title=\"The entity that obtains control of the acquiree. However, in a business combination in which a variable interest entity (VIE) is acquired, the primary beneficiary of that entity always is the acquirer. (P) December 16, 2026; (N) December 16, 2026805-10-65-5The entity that obtains control of the acquiree.See paragraphs 805-10-25-4805-10-25-5 for guidance on determining the acquirer.\"><span>Acquirer</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2025-03/\" class=\"xref\">Accounting Standards Update No. 2025-03</a></td><td class=\"entry\">05/12/2025</td></tr><tr><td class=\"entry\"><a href=\"/glossary/a/#acquisition-by-a-not-for-profit-entity\" class=\"term\" title=\"A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.\"><span>Acquisition by a Not-for-Profit Entity</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#business\" class=\"term\" title=\"Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.\"><span>Business</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2017-01/\" class=\"xref\">Accounting Standards Update No. 2017-01</a></td><td class=\"entry\">01/05/2017</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#business-combination\" class=\"term\" title=\"A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals also are business combinations. See also Acquisition by a Not-for-Profit Entity.\"><span>Business Combination</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#commencement-date-of-the-lease-commencement-date\" class=\"term\" title=\"The date on which a lessor makes an underlying asset available for use by a lessee. See paragraphs 842-10-55-19842-10-55-20842-10-55-21 for implementation guidance on the commencement date.\"><span>Commencement Date of the Lease (Commencement Date)</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>Contract</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Excess Tax Benefits</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-09/\" class=\"xref\">Accounting Standards Update No. 2016-09</a></td><td class=\"entry\">03/30/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/g/#goodwill\" class=\"term\" title=\"An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.\"><span>Goodwill</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2023-05/\" class=\"xref\">Accounting Standards Update No. 2023-05</a></td><td class=\"entry\">08/23/2023</td></tr><tr><td class=\"entry\"><a href=\"/glossary/g/#goodwill\" class=\"term\" title=\"An asset representing the future economic benefits arising from other assets acquired in a business combination, acquired in an acquisition by a not-for-profit entity, or recognized by a joint venture upon formation that are not individually identified and separately recognized. For ease of reference, this term also includes the immediate charge recognized by not-for-profit entities in accordance with paragraph 958-805-25-29.\"><span>Goodwill</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lease\" class=\"term\" title=\"A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.\"><span>Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lessee\" class=\"term\" title=\"An entity that enters into a contract to obtain the right to use an underlying asset for a period of time in exchange for consideration.\"><span>Lessee</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#lessor\" class=\"term\" title=\"An entity that enters into a contract to provide the right to use an underlying asset for a period of time in exchange for consideration.\"><span>Lessor</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#leveraged-lease\" class=\"term\" title=\"From the perspective of a lessor, a lease that was classified as a leveraged lease in accordance with the leases guidance in effect before the effective date and for which the commencement date is before the effective date.\"><span>Leveraged Lease</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/t/#temporary-difference\" class=\"term\" title=\"A difference between the tax basis of an asset or liability computed pursuant to the requirements in Subtopic 740-10 for tax positions, and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively. Paragraph 740-10-25-20 cites examples of temporary differences. Some temporary differences cannot be identified with a particular asset or liability for financial reporting (see paragraphs 740-10-05-10 and 740-10-25-24740-10-25-25), but those temporary differences do meet both of the following conditions: Result from events that have been recognized in the financial statements Will result in taxable or deductible amounts in future years based on provisions of the tax law. Some events recognized in financial statements do not have tax consequences. Certain revenues are exempt from taxation and certain expenses are not deductible. Events that do not have tax consequences do not give rise to temporary differences.\"><span>Temporary Difference</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-16/\" class=\"xref\">Accounting Standards Update No. 2016-16</a></td><td class=\"entry\">10/24/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/u/#underlying-asset\" class=\"term\" title=\"An asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset.\"><span>Underlying Asset</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Variable Interest Entity</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2025-03/\" class=\"xref\">Accounting Standards Update No. 2025-03</a></td><td class=\"entry\">05/12/2025</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-05-1\" class=\"xref\">805-740-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-05-2\" class=\"xref\">805-740-05-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-25-4\" class=\"xref\">805-740-25-4</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-25-10\" class=\"xref\">805-740-25-10</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-07/\" class=\"xref\">Accounting Standards Update No. 2018-07</a></td><td class=\"entry\">06/20/2018</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-25-11\" class=\"xref\">805-740-25-11</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-07/\" class=\"xref\">Accounting Standards Update No. 2018-07</a></td><td class=\"entry\">06/20/2018</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-25-12\" class=\"xref\">805-740-25-12</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/asc-pdf/GUID-86B34FCD-7B0A-4349-8682-E212043FD47A.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-06 (PDF)</a></td><td class=\"entry\">04/07/2017</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-25-13\" class=\"xref\">805-740-25-13</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-09/\" class=\"xref\">Accounting Standards Update No. 2018-09</a></td><td class=\"entry\">07/16/2018</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-30-1\" class=\"xref\">805-740-30-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-45-5\" class=\"xref\">805-740-45-5</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-09/\" class=\"xref\">Accounting Standards Update No. 2016-09</a></td><td class=\"entry\">03/30/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/740/805/#740-805-45-6\" class=\"xref\">805-740-45-6</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-09/\" class=\"xref\">Accounting Standards Update No. 2016-09</a></td><td class=\"entry\">03/30/2016</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAcquiree | Amended | Accounting Standards Update No. 2010-07 | 01/28/2010 |\nAcquirer | 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