# ASC 805-20-15: Business Combinations — Identifiable Assets and Liabilities, and Any Noncontrolling Interest — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/20/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:e454d0c3e4d3a34b51c65362465ab953f166f40a2178e32f3cf75a58778d924d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-20-15-1](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:a0df69a7d170e28fc093206242c53a477620029674f596c45a9c26387028c4a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 805-10-15. ### Accounting Alternatives ##### [805-20-15-1A](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:9986b3d32ef9cb0efe5c9f81b6b594345286e46708e4f9e1b192118856cce315 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [805-20-15-2 through 15-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-2) and [805-20-25-29 through 25-33](https://asc.understandingaccounting.org/asc/805/20/#805-20-25-29) provide guidance for an entity electing the accounting alternative in this Subtopic. See paragraph [805-20-65-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-65-2) for transition guidance for [private companies](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.") and [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.")on applying the accounting alternative in this Subtopic. ##### [805-20-15-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:45c85f462540bd1ae86a856564fbe4ea3c3111cc693dbdd5abc1aa985d7055e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [805-10-05-4](https://asc.understandingaccounting.org/asc/805/10/#805-10-05-4)for 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](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") in accordance with Subtopic 805-60. ##### [805-20-15-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:f3172dcaf2f0daf687e50678b54724b58e23db68b7c896bddae955112d5abee3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-2). ##### [805-20-15-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:23:11.322Z to 2026-09-10T01:23:11.322Z Record version: sha256:a2f73fe15a3116bafcb9258a5b8d888f1060e53b04f4ae326732f2ef1faf2e42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that elects this accounting alternative must adopt the accounting alternative for amortizing [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.") 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.