{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/20/#40-derecognition","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":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"805-20-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Business Combinations Topic directly establishes generally accepted accounting principles (GAAP) for business combinations related to recognition and initial measurement. Paragraph <a href=\"/asc/805/10/#805-10-35-1\" class=\"xref\">805-10-35-1</a> cites the general requirement for an <a href=\"/glossary/a/#acquirer\" class=\"term\" title=\"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.\"><span>acquirer</span></a> to subsequently measure and account for assets acquired, liabilities assumed or incurred, and equity instruments issued in a <a href=\"/glossary/b/#business-combination\" class=\"term\" title=\"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.\"><span>business combination</span></a> in accordance with other applicable GAAP. However, that paragraph also identifies specific items for which the Business Combinations Topic provides guidance. This Section provides guidance on one of those specific items as follows.</div> </div>","snippet":"The Business Combinations Topic directly establishes generally accepted accounting principles (GAAP) for business combinations related to recognition and initial measurement. Paragraph 805-10-35-1 cites the general requi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:592da2b7e28462ebaba1a047e3e6ba46187265f0037f7de3fe13767bd4b03b02","downloaded_from":"2026-09-10T01:23:29.973Z","last_downloaded_at":"2026-09-10T01:23:29.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479940","source_sha256":"86e2aaacdc452c569da310048501675b9e746c755cfbd1f34fb14f2593ba8adf"}},{"citation":"805-20-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <a href=\"/updates/page-1833002/\" class=\"xref\">Paragraph not used</a>.</div> </div>","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eeb45051e15a0b7f773f8cf532ec93d64d790aede158ca3ea834eecef8e95dd5","downloaded_from":"2026-09-10T01:23:29.973Z","last_downloaded_at":"2026-09-10T01:23:29.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479940","source_sha256":"86e2aaacdc452c569da310048501675b9e746c755cfbd1f34fb14f2593ba8adf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:297c639d8cbe1dc9a6f95c83ef0d2281e216a5634632370fc8986b4549ae56d9","downloaded_from":"2026-09-10T01:23:29.973Z","last_downloaded_at":"2026-09-10T01:23:29.973Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479940","source_sha256":"86e2aaacdc452c569da310048501675b9e746c755cfbd1f34fb14f2593ba8adf"}},{"block":null,"heading":"Indemnification Assets","paragraphs":[{"citation":"805-20-40-3","para":"40-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_7AC7BDE1-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The acquirer shall derecognize an indemnification asset recognized in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/805/20/#805-20-25-27\" class=\"xref\">805-20-25-27 through 25-28</a></div> only when it collects the asset, sells it, or otherwise loses the right to it. </span></span> </div> </div>","snippet":"The acquirer shall derecognize an indemnification asset recognized in accordance with paragraphs 805-20-25-27 through 25-28 only when it collects the asset, sells it, or otherwise loses the right to 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