{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/20/#15-scope-and-scope-exceptions","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":"805-20","subtopic_title":"Identifiable Assets and Liabilities, and Any Noncontrolling Interest","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"805-20-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 805-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 805-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0df69a7d170e28fc093206242c53a477620029674f596c45a9c26387028c4a5","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:386137368aaad920038494a3aadb542ade1bfbec21b3408077fd74cc29e1dc14","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}},{"block":"Accounting Alternatives","heading":null,"paragraphs":[{"citation":"805-20-15-1A","para":"15-1A","html":"
Paragraphs
805-20-15-2 through 15-4
and
805-20-25-29 through 25-33
provide guidance for an entity electing the accounting alternative in this Subtopic. See paragraph 805-20-65-2 for transition guidance for private companies and not-for-profit entitieson applying the accounting alternative in this Subtopic.
","snippet":"Paragraphs 805-20-15-2 through 15-4 and 805-20-25-29 through 25-33 provide guidance for an entity electing the accounting alternative in this Subtopic. See paragraph 805-20-65-2 for transition guidance for private compan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9986b3d32ef9cb0efe5c9f81b6b594345286e46708e4f9e1b192118856cce315","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}},{"citation":"805-20-15-2","para":"15-2","html":"
A private company or not-for-profit entity may make an accounting policy election to apply the accounting alternative in this Subtopic. The guidance in the Accounting Alternative Subsections of this Subtopic applies when a private company or not-for-profit entity is required to recognize or otherwise consider the fair value of intangible assets as a result of any one of the following transactions:
  1. a
    Applying the acquisition method (as described in paragraph 805-10-05-4for all entities and Subtopic 958-805 for additional guidance for not-for-profit entities)
  2. b
    Assessing the nature of the difference between the carrying amount of an investment and the amount of underlying equity in net assets of an investee when applying the equity method of accounting in accordance with Topic 323 on investments—equity method and joint ventures
  3. c
    Adopting fresh-start reporting in accordance with Topic 852 on reorganizations
  4. d
    Accounting for the formation of a joint venture in accordance with Subtopic 805-60.
","snippet":"A private company or not-for-profit entity may make an accounting policy election to apply the accounting alternative in this Subtopic. The guidance in the Accounting Alternative Subsections of this Subtopic applies when…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45c85f462540bd1ae86a856564fbe4ea3c3111cc693dbdd5abc1aa985d7055e5","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}},{"citation":"805-20-15-3","para":"15-3","html":"
An entity that elects the accounting alternative shall apply all of the related recognition requirements upon election. The accounting alternative, once elected, shall be applied to all future transactions that are identified in paragraph 805-20-15-2.
","snippet":"An entity that elects the accounting alternative shall apply all of the related recognition requirements upon election. The accounting alternative, once elected, shall be applied to all future transactions that are ident…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3172dcaf2f0daf687e50678b54724b58e23db68b7c896bddae955112d5abee3","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}},{"citation":"805-20-15-4","para":"15-4","html":"
An entity that elects this accounting alternative must adopt the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of Topic 350-20 on intangibles—goodwill and other. If the accounting alternative for amortizing goodwill was not adopted previously, it should be adopted on a prospective basis as of the adoption of the accounting alternative in this Subtopic. For example, upon adoption, existing goodwill should be amortized on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. However, an entity that elects the accounting alternative for amortizing goodwill is not required to adopt the accounting alternative in this Subtopic.
","snippet":"An entity that elects this accounting alternative must adopt the accounting alternative for amortizing goodwill in the Accounting Alternatives Subsections of Topic 350-20 on intangibles—goodwill and other. If the account…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2f73fe15a3116bafcb9258a5b8d888f1060e53b04f4ae326732f2ef1faf2e42","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8de99c42e856734c6373c2321129eea85f0195ae3f3d6ffc30d472034e1c82d9","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e454d0c3e4d3a34b51c65362465ab953f166f40a2178e32f3cf75a58778d924d","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e454d0c3e4d3a34b51c65362465ab953f166f40a2178e32f3cf75a58778d924d","downloaded_from":"2026-09-10T01:23:11.322Z","last_downloaded_at":"2026-09-10T01:23:11.322Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480073","source_sha256":"f29efe6bc51baa5f31efe1049e9a9cc8fde45f690a534f0d1f3c79a0d63380d8"}}