Paragraph
805-10-50-1 identifies one of the objectives of disclosures about a
business combination.
To meet that objective, the acquirer shall disclose all of the following information for each business combination that occurs during the reporting period: - a
For indemnification assets, all of the following:
- 1
- 2
A description of the arrangement and the basis for determining the amount of the payment
- 3
An estimate of the range of outcomes (undiscounted) or, if a range cannot be estimated, that fact and the reasons why a range cannot be estimated. If the maximum amount of the payment is unlimited, the acquirer shall disclose that fact.
- b
For acquired receivables not subject to the requirements of Subtopic 326-20 relating to purchased financial assets with credit deterioration, all of the following: - 1
- 2
The gross contractual amounts receivable
- 3
The best estimate at the acquisition date of the contractual cash flows not expected to be collected.
The disclosures shall be provided by major class of receivable, such as loans, net investment in sales-type or direct financing leases in accordance with Subtopic 842-30 on leases—lessor, and any other class of receivables. - c
The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed (see Example 5 [paragraph 805-10-55-37]). - d
For contingencies, the following disclosures shall be included in the note that describes the business combination:
- 1
For assets and liabilities arising from contingencies recognized at the acquisition date:
- i
The amounts recognized at the acquisition date and the measurement basis applied (that is, at fair value or at an amount recognized in accordance with Topic 450 and Section 450-20-25) - ii
The nature of the contingencies.
An acquirer may aggregate disclosures for assets or liabilities arising from contingencies that are similar in nature.
- 2
For contingencies that are not recognized at the acquisition date, the disclosures required by Topic 450 if the criteria for disclosures in that Topic are met.
An acquirer may aggregate disclosures for assets and liabilities arising from contingencies that are similar in nature.
- e
For each business combination in which the acquirer holds less than 100 percent of the equity interests in the acquiree at the acquisition date, both of the following: - 1
The fair value of the noncontrolling interest in the acquiree at the acquisition date
- 2
The valuation technique(s) and significant inputs used to measure the fair value of the noncontrolling interest.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1Paragraph
805-10-50-1 identifies one of the objectives of disclosures about a
business combination.
To meet that objective, the acquirer shall disclose in interim and annual reporting periods all of the following information for each business combination that occurs during the reporting period: - a
For indemnification assets, all of the following:
- 1
- 2
A description of the arrangement and the basis for determining the amount of the payment
- 3
An estimate of the range of outcomes (undiscounted) or, if a range cannot be estimated, that fact and the reasons why a range cannot be estimated. If the maximum amount of the payment is unlimited, the acquirer shall disclose that fact.
- b
For acquired receivables not subject to the requirements of Subtopic 326-20 relating to purchased financial assets with credit deterioration, all of the following: - 1
- 2
The gross contractual amounts receivable
- 3
The best estimate at the acquisition date of the contractual cash flows not expected to be collected.
The disclosures shall be provided by major class of receivable, such as loans, net investment in sales-type or direct financing leases in accordance with Subtopic 842-30 on leases—lessor, and any other class of receivables. - c
The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed (see Example 5 [paragraph 805-10-55-37]). - d
For contingencies, the following disclosures shall be included in the note that describes the business combination:
- 1
For assets and liabilities arising from contingencies recognized at the acquisition date:
- i
The amounts recognized at the acquisition date and the measurement basis applied (that is, at fair value or at an amount recognized in accordance with Topic 450 and Section 450-20-25) - ii
The nature of the contingencies.
An acquirer may aggregate disclosures for assets or liabilities arising from contingencies that are similar in nature.
- 2
For contingencies that are not recognized at the acquisition date, the disclosures required by Topic 450 if the criteria for disclosures in that Topic are met.
An acquirer may aggregate disclosures for assets and liabilities arising from contingencies that are similar in nature.
- e
For each business combination in which the acquirer holds less than 100 percent of the equity interests in the acquiree at the acquisition date, both of the following: - 1
The fair value of the noncontrolling interest in the acquiree at the acquisition date
- 2
The valuation technique(s) and significant inputs used to measure the fair value of the noncontrolling interest.
For individually immaterial business combinations occurring during the reporting period that are material collectively, the acquirer shall disclose the information required by paragraph 805-20-50-1 in the aggregate. (P) December 16, 2027; (N) December 16, 2028
270-10-65-1For individually immaterial business combinations occurring during the reporting period that are material collectively, the acquirer shall disclose the information required by paragraph 805-20-50-1 in the aggregate in interim and annual reporting periods.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 805-20-50-1 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. (P) December 16, 2027; (N) December 16, 2028
270-10-65-1If 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 805-20-50-1in 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. Paragraph
805-10-50-5 identifies the second objective of disclosures about the effects of business combinations that occurred in the current or previous reporting periods.
To meet the objective in that paragraph, the acquirer shall disclose the information in paragraph 805-20-50-4A for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively. (P) December 16, 2027; (N) December 16, 2028
270-10-65-1Paragraph
805-10-50-5 identifies the second objective of disclosures about the effects of business combinations that occurred in the current or previous reporting periods.
To meet the objective in that paragraph, in interim and annual reporting periods the acquirer shall disclose the information in paragraph 805-20-50-4A for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively. If the initial accounting for a business combination is incomplete (see paragraphs ) for particular assets, liabilities, noncontrolling interests, or items of consideration and the amounts recognized in the financial statements for the business combination thus have been determined only provisionally, the acquirer shall disclose the following information for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively to meet the objective in paragraph 805-10-50-5: - a
The reasons why the initial accounting is incomplete
- b
The assets, liabilities, equity interests, or items of consideration for which the initial accounting is incomplete
- c
The nature and amount of any measurement period adjustments recognized during the reporting period in accordance with paragraph 805-10-25-17, including separately the amount of adjustment to current-period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustment to provisional amounts were recognized as of the acquisition date. Alternatively, an acquirer may present those amounts separately on the face of the income statement.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1If the initial accounting for a business combination is incomplete (see paragraphs ) for particular assets, liabilities, noncontrolling interests, or items of consideration and the amounts recognized in the financial statements for the business combination thus have been determined only provisionally, the acquirer shall disclose in interim and annual reporting periods the following information for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively to meet the objective in paragraph 805-10-50-5: - a
The reasons why the initial accounting is incomplete
- b
The assets, liabilities, equity interests, or items of consideration for which the initial accounting is incomplete
- c
The nature and amount of any measurement period adjustments recognized during the reporting period in accordance with paragraph 805-10-25-17, including separately the amount of adjustment to current-period income statement line items relating to the income effects that would have been recognized in previous periods if the adjustment to provisional amounts were recognized as of the acquisition date. Alternatively, an acquirer may present those amounts separately on the face of the income statement.
For any of the practical expedients in paragraph 805-20-30-29 that an acquirer uses, the acquirer shall disclose all of the following information: - a
The expedients that have been used
- b
To the extent reasonably possible, a qualitative assessment of the estimated effect of applying each of those expedients.
(P) December 16, 2027; (N) December 16, 2028
270-10-65-1 For any of the practical expedients in paragraph 805-20-30-29 that an acquirer uses, the acquirer shall disclose all of the following information in interim and annual reporting periods:- a
The expedients that have been used
- b
To the extent reasonably possible, a qualitative assessment of the estimated effect of applying each of those expedients.