# ASC 805-10-30: Business Combinations — Overall — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

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## ASC 805-10-30: 30 Initial Measurement

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##### [805-10-30-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-30-1)

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Paragraph [805-10-25-15](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-15) establishes that the measurement period provides the [acquirer](https://asc.understandingaccounting.org/glossary/a/#acquirer "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.") with a reasonable time to obtain the information necessary to identify and measure various items in a [business combination](https://asc.understandingaccounting.org/glossary/b/#business-combination "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.").

##### [805-10-30-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-30-2)

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The acquirer shall consider all pertinent factors in determining whether information obtained after the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 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.

##### [805-10-30-3](https://asc.understandingaccounting.org/asc/805/10/#805-10-30-3)

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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 [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") 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.