# ASC 805-20-05: Business Combinations — Identifiable Assets and Liabilities, and Any Noncontrolling Interest — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/20/#05-overview-and-background) 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): 2026-09-10T01:23:09.220Z to 2026-09-10T01:23:09.220Z Record version: sha256:cc340fc09f2c7869e4200c7782945ceafbc26f7457737a82bc77fb767df0c7a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/805/20/#05-overview-and-background) SEC content: no ##### [805-20-05-1](https://asc.understandingaccounting.org/asc/805/20/#805-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:09.220Z to 2026-09-10T01:23:09.220Z Record version: sha256:270ee90cdf88b15c3db04ee5d12a7f4894e9108eac3b2f35c985b1d73673bb5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on one aspect of the acquisition method (as described in paragraph [805-10-05-4](https://asc.understandingaccounting.org/asc/805/10/#805-10-05-4))—the recognition and measurement of all of the following: 1. a [Identifiable](https://asc.understandingaccounting.org/glossary/i/#identifiable "An asset is identifiable if it meets either of the following criteria: It is separable, that is, capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset, or liability, regardless of whether the entity intends to do so. It arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.") assets acquired 2. b Liabilities assumed 3. c [Noncontrolling interests](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest."), if any, in 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."). ##### [805-20-05-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:09.220Z to 2026-09-10T01:23:09.220Z Record version: sha256:28069aba73c6a5b23da04065bdae2fd824e1e915829d5a56ea0acaa63c40adc7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The remaining aspects of the acquisition method are addressed in Subtopics 805-10 and 805-30. Subtopic 805-30 addresses the recognition and measurement of [goodwill](https://asc.understandingaccounting.org/glossary/g/#goodwill "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.") or a gain from a bargain purchase. Subtopic 805-10 addresses all of the following: 1. a Identification of 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.") 2. b Determination of the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 3. c Particular types of [business combinations](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.") 4. d Measurement period 5. e Determination of what is part of a business combination. ##### [805-20-05-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:09.220Z to 2026-09-10T01:23:09.220Z Record version: sha256:93b4e8109a39412788c08d3bbe425f4053a7e5306caad317cf9f695238825845 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic is presented in the following two Subsections: 1. a General 2. b Accounting Alternative. ### Accounting Alternative ##### [805-20-05-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:09.220Z to 2026-09-10T01:23:09.220Z Record version: sha256:daec3e6db0d133d481b3eb40d69d66e3df272ff100b4e8805df4c8aaff410f2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Accounting Alternative Subsections of this Subtopic provide guidance for an entity within the scope of paragraph [805-20-15-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-2) that elects the accounting alternative for the recognition of identifiable intangible assets acquired in a business combination.