{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/10/#30-initial-measurement","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":"805","topic_title":"Business Combinations","subtopic":"805-10","subtopic_title":"Overall","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"805-10-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraph <a href=\"/asc/805/10/#805-10-25-15\" class=\"xref\">805-10-25-15</a> establishes that the measurement period provides the <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> with a reasonable time to obtain the information necessary to identify and measure various items in a <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>.<span class=\"sfragment\" id=\"sfr_77219B69-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span></div></div>","snippet":"Paragraph 805-10-25-15 establishes that the measurement period provides the acquirer with a reasonable time to obtain the information necessary to identify and measure various items in a business combination.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0aec4eacc052af558ab8647a1b6cb5003040254e85827a4b5c93d44e1dfd8d63","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}},{"citation":"805-10-30-2","para":"30-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The acquirer shall consider all pertinent factors in determining whether information obtained after the <a href=\"/glossary/a/#acquisition-date\" class=\"term\" title=\"The date on which the acquirer obtains control of the acquiree.\"><span>acquisition date</span></a> should result in an adjustment to the provisional amounts recognized or whether that information results from events that occurred after the acquisition date. Pertinent factors include the time at which additional information is obtained and whether the acquirer can identify a reason for a change to provisional amounts.<span class=\"sfragment\" id=\"sfr_77219C83-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span></div></div>","snippet":"The acquirer shall consider all pertinent factors in determining whether information obtained after the acquisition date should result in an adjustment to the provisional amounts recognized or whether that information re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4bfa05cb9cfda4e44722539b7327579cea640436dc16b6acfdd12485dd5988e","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}},{"citation":"805-10-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">Information that is obtained shortly after the acquisition date is more likely to reflect circumstances that existed at the acquisition date than is information obtained several months later. For example, unless an intervening event that changed its <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> can be identified, the sale of an asset to a third party shortly after the acquisition date for an amount that differs significantly from its provisional fair value determined at that date is likely to indicate an error in the provisional amount. <span class=\"sfragment\" id=\"sfr_77219D5E-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"></span></span></div></div>","snippet":"Information that is obtained shortly after the acquisition date is more likely to reflect circumstances that existed at the acquisition date than is information obtained several months later. For example, unless an inter…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f40564df98c3b918e44e7a5bf0a2a1700d16e1eb60ff28a67285af77687ff5d2","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:704ae7cc4bcf176d30ed9c7663c335f5e5f20111f5e92be79b37a2d4f9bf228e","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19d55a8913c4da3fef6b11fea0ea0e6b1231768c6890d300f8f3ea7f0f961e25","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19d55a8913c4da3fef6b11fea0ea0e6b1231768c6890d300f8f3ea7f0f961e25","downloaded_from":"2026-09-10T01:22:30.514Z","last_downloaded_at":"2026-09-10T01:22:30.514Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479377","source_sha256":"29ef770b6d45e5518e09f73798f1b2b5754fdeb901237a4c1b89d1f0fb1995b3"}}