# ASC 805-10-35: Business Combinations — Overall — 35 Subsequent Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/805/10/#35-subsequent-measurement)

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## ASC 805-10-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/805/10/#35-subsequent-measurement)

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##### [805-10-35-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-35-1)

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In general, an [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.") shall subsequently measure and account for assets acquired, liabilities assumed or incurred, and equity instruments issued 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.") in accordance with other applicable generally accepted accounting principles (GAAP) for those items, depending on their nature. However, this Topic provides guidance on subsequently measuring and accounting for any of the following assets acquired, liabilities assumed or incurred, and equity instruments issued in a business combination:

1.  a
    
    Reacquired rights (see paragraph [805-20-35-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-35-2))
    
2.  b
    
    Assets and liabilities arising from contingencies recognized as of the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") (see paragraph [805-20-35-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-35-3))
    
3.  c
    
    Indemnification assets (see paragraph [805-20-35-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-35-4))
    
4.  d
    
    [Contingent consideration](https://asc.understandingaccounting.org/glossary/c/#contingent-consideration "Usually an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.") (see paragraph [805-30-35-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-1))
    
5.  e
    
    Contingent consideration arrangements of an acquiree assumed by the acquirer (see paragraph [805-30-35-1A](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-1A)).

##### [805-10-35-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-35-2)

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Other Subtopics in this Topic provide examples of guidance elsewhere in GAAP on subsequently measuring and accounting for assets acquired, liabilities assumed or incurred, and any noncontrolling interests in a business combination.