# ASC 805-10-50: Business Combinations — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/10/#50-disclosure) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:9b5229871d3a18526814a1429ffd8055818f51fa3c7aa22c799f2fbae5de79e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/10/#50-disclosure) SEC content: no #### Business Combinations Occurring during a Current Reporting Period or after the Reporting Date but before the Financial Statements Are Issued ##### [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:039ef3b0532daf1740fdb7bf2ed4ae82233a74cee8065e3b8223aaeef2996fb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.") shall disclose information that enables users of its financial statements to evaluate the nature and financial effect of 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.") that occurs either: 1. a During the current reporting period 2. b After the reporting date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, 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.") shall disclose information that enables users of its financial statements to evaluate the nature and financial effect of 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.") that occurs either: 1. a During the current reporting period 2. b After the reporting date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25). ##### [805-10-50-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:f023cc57183a911be7c7478207e1ce1ec5158043f5b557a03f2ff1ff79e76c82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To meet the objective in paragraph [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1), the acquirer shall disclose the following information for each business combination that occurs during the reporting period: 1. a The name and a description of the [acquiree](https://asc.understandingaccounting.org/glossary/a/#acquiree "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.") 2. b The [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 3. c The percentage of voting [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") acquired 4. d The primary reasons for the business combination and a description of how the acquirer obtained [control](https://asc.understandingaccounting.org/glossary/c/#control "The same as the meaning of controlling financial interest in paragraph 810-10-15-8.") of the acquiree 5. e For transactions that are recognized separately from the acquisition of assets and assumptions of liabilities in the business combination (see paragraph [805-10-25-20](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-20)), all of the following: 1. 1 A description of each transaction 2. 2 How the acquirer accounted for each transaction 3. 3 The amounts recognized for each transaction and the line item in the financial statements in which each amount is recognized 4. 4 If the transaction is the effective settlement of a preexisting relationship, the method used to determine the settlement amount. 6. f The disclosure of separately recognized transactions required in (e) shall include the amount of acquisition-related costs, the amount recognized as an expense, and the line item or items in the income statement in which those expenses are recognized. The amount of any issuance costs not recognized as an expense and how they were recognized also shall be disclosed. 7. g In a business combination achieved in stages, all of the following: 1. 1 The acquisition-date [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.") of the equity interest in the acquiree held by the acquirer immediately before the acquisition date 2. 2 The amount of any gain or loss recognized as a result of remeasuring to fair value the equity interest in the acquiree held by the acquirer immediately before the business combination (see paragraph [805-10-25-10](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-10)) and the line item in the income statement in which that gain or loss is recognized 3. 3 The valuation technique(s) used to measure the acquisition-date fair value of the equity interest in the acquiree held by the acquirer immediately before the business combination 4. 4 Information that enables users of the acquirer's financial statements to assess the inputs used to develop the fair value measurement of the equity interest in the acquiree held by the acquirer immediately before the business combination. 8. h If the acquirer is a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market."), all of the following: 1. 1 The amounts of revenue and earnings of the acquiree since the acquisition date included in the consolidated income statement for the reporting period. 2. 2 If comparative financial statements are not presented, the revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period (supplemental pro forma information). 3. 3 If comparative financial statements are presented, the revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period (supplemental pro forma information). For example, for a calendar year-end entity, disclosures would be provided for a business combination that occurs in 20X2, as if it occurred on January 1, 20X1. Such disclosures would not be revised if 20X2 is presented for comparative purposes with the 20X3 financial statements (even if 20X2 is the earliest period presented). 4. 4 The nature and amount of any material, nonrecurring pro forma adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information). If disclosure of any of the information required by (h) is impracticable, the acquirer shall disclose that fact and explain why the disclosure is impracticable. In this context, the term _impracticable_ has the same meaning as in paragraph [250-10-45-9](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-9). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)To meet the objective in paragraph [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1), the acquirer shall disclose in interim and annual reporting periods the following information for each business combination that occurs during the reporting period: 1. a The name and a description of the [acquiree](https://asc.understandingaccounting.org/glossary/a/#acquiree "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.") 2. b The [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 3. c The percentage of voting [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") acquired 4. d The primary reasons for the business combination and a description of how the acquirer obtained [control](https://asc.understandingaccounting.org/glossary/c/#control "The same as the meaning of controlling financial interest in paragraph 810-10-15-8.") of the acquiree 5. e For transactions that are recognized separately from the acquisition of assets and assumptions of liabilities in the business combination (see paragraph [805-10-25-20](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-20)), all of the following: 1. 1 A description of each transaction 2. 2 How the acquirer accounted for each transaction 3. 3 The amounts recognized for each transaction and the line item in the financial statements in which each amount is recognized 4. 4 If the transaction is the effective settlement of a preexisting relationship, the method used to determine the settlement amount. 6. f The disclosure of separately recognized transactions required in (e) shall include the amount of acquisition-related costs, the amount recognized as an expense, and the line item or items in the income statement in which those expenses are recognized. The amount of any issuance costs not recognized as an expense and how they were recognized also shall be disclosed. 7. g In a business combination achieved in stages, all of the following: 1. 1 The acquisition-date [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.") of the equity interest in the acquiree held by the acquirer immediately before the acquisition date 2. 2 The amount of any gain or loss recognized as a result of remeasuring to fair value the equity interest in the acquiree held by the acquirer immediately before the business combination (see paragraph [805-10-25-10](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-10)) and the line item in the income statement in which that gain or loss is recognized 3. 3 The valuation technique(s) used to measure the acquisition-date fair value of the equity interest in the acquiree held by the acquirer immediately before the business combination 4. 4 Information that enables users of the acquirer's financial statements to assess the inputs used to develop the fair value measurement of the equity interest in the acquiree held by the acquirer immediately before the business combination. 8. h If the acquirer is a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market."), all of the following: 1. 1 The amounts of revenue and earnings of the acquiree since the acquisition date included in the consolidated income statement for the reporting period. 2. 2 If comparative financial statements are not presented, the revenue and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period (supplemental pro forma information). 3. 3 If comparative financial statements are presented, the revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period (supplemental pro forma information). For example, for a calendar year-end entity, disclosures would be provided for a business combination that occurs in 20X2, as if it occurred on January 1, 20X1. Such disclosures would not be revised if 20X2 is presented for comparative purposes with the 20X3 financial statements (even if 20X2 is the earliest period presented). 4. 4 The nature and amount of any material, nonrecurring pro forma adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information). If disclosure of any of the information required by (h) is impracticable, the acquirer shall disclose that fact and explain why the disclosure is impracticable. In this context, the term _impracticable_ has the same meaning as in paragraph [250-10-45-9](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-9). ##### [805-10-50-3](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:614fec119a7f80b9010ef450c85a51e5ee64f01b97683c04897c5b33f6fb81b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For individually immaterial business combinations occurring during the reporting period that are material collectively, the acquirer shall disclose the information required by (e) through (h) in paragraph [805-10-50-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-2) in the aggregate. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For individually immaterial business combinations occurring during the reporting period that are material collectively, the acquirer shall disclose the information required by (e) through (h) in paragraph [805-10-50-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-2) in the aggregate in interim and annual reporting periods. ##### [805-10-50-4](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:060eee10780284577af781f0da5f5657672af91d247273f5678ea4a4e7711acd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the acquisition date of a business combination is after the reporting date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall disclose the information required by paragraph [805-10-50-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-2) unless the initial accounting for the business combination is incomplete at the time the financial statements are issued or are available to be issued. In that situation, the acquirer shall describe which disclosures could not be made and the reason why they could not be made. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If the acquisition date of a business combination is after the reporting date but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall disclose the information required by paragraph [805-10-50-2](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-2)in interim and annual reporting periods unless the initial accounting for the business combination is incomplete at the time the financial statements are issued or are available to be issued. In that situation, the acquirer shall describe which disclosures could not be made and the reason why they could not be made. #### The Financial Effects of Adjustments That Relate to Business Combinations That Occurred in the Current or Previous Reporting Periods ##### [805-10-50-5](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:c4ab09fcd12142aa628a21886456b1ae95ff0eb53530baffc92f220f7c5028d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The acquirer shall disclose information that enables users of its financial statements to evaluate the financial effects of adjustments recognized in the current reporting period that relate to business combinations that occurred in the current or previous reporting periods. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The acquirer shall disclose information in interim and annual reporting periods that enables users of its financial statements to evaluate the financial effects of adjustments recognized in the current reporting period that relate to business combinations that occurred in the current or previous reporting periods. ##### [805-10-50-6](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:1dfb0c3a38ef2025b83cde91e9f347e465a833985076f0fd134d798e5570e566 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-10](https://asc.understandingaccounting.org/updates/asu-2015-10/). #### Other Disclosures ##### [805-10-50-7](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-7) Pending content: yes Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:11ecfd3f5a86058014b763069dffcc1bab6e2b90440042af7ed92590eeaf2b71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the specific disclosures required by this Subtopic and other generally accepted accounting principles (GAAP) do not meet the objectives set out in paragraphs [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1) and [805-10-50-5](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-5), the acquirer shall disclose whatever additional information is necessary to meet those objectives. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If the specific disclosures required by this Subtopic and other generally accepted accounting principles (GAAP) do not meet the objectives set out in paragraphs [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1) and [805-10-50-5](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-5), the acquirer shall disclose whatever additional information is necessary to meet those objectives in interim and annual reporting periods. ##### [805-10-50-8](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:22:35.815Z to 2026-09-10T01:22:35.815Z Record version: sha256:b7ba3367f3257f647b3f06cce03d74a23f378229abf2dec422dd8b1f9849bc6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Example 5 (see paragraph [805-10-55-37 through 55-50](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-37) ) illustrates the disclosure requirements applicable to business combinations.