# ASC 805-20-50: Business Combinations — Identifiable Assets and Liabilities, and Any Noncontrolling Interest — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/20/#50-disclosure) 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): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:d3277de4c2a6200748e348ceacc83a5f99a6745395c6d54e9cd60c6dab4cb2a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/20/#50-disclosure) SEC content: no #### Business Combinations Occurring during a Current Reporting Period or after the Reporting Date but before the Financial Statements Are Issued ##### [805-20-50-1](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:eb88946d6693063f846dd8d3ece5031e00c33c1266b095fb3e316beb620d94bd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1) identifies one of the objectives of disclosures about a [business combination](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."). To meet that objective, 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.") shall disclose all of the following information for each business combination that occurs during the reporting period: 1. a For indemnification assets, all of the following: 1. 1 The amount recognized as of the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 2. 2 A description of the arrangement and the basis for determining the amount of the payment 3. 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. 2. 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. 1 The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the receivables (unless those receivables arise from [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.") or [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A.") by the lessor for which the acquirer shall disclose the amounts recognized as of the acquisition date) 2. 2 The gross contractual amounts receivable 3. 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. 3. c The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed (see Example 5 \[paragraph [805-10-55-37](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-37)\]). 4. d For contingencies, the following disclosures shall be included in the note that describes the business combination: 1. 1 For assets and liabilities arising from contingencies recognized at the acquisition date: 1. 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) 2. ii The nature of the contingencies. An acquirer may aggregate disclosures for assets or liabilities arising from contingencies that are similar in nature. 2. 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. 5. e For each business combination in which the acquirer holds less than 100 percent of the equity interests 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.") at the acquisition date, both of the following: 1. 1 The fair value of the noncontrolling interest in the acquiree at the acquisition date 2. 2 The valuation technique(s) and significant inputs used to measure the fair value of the noncontrolling interest. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Paragraph [805-10-50-1](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-1) identifies one of the objectives of disclosures about a [business combination](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."). To meet that objective, 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.") shall disclose in interim and annual reporting periods all of the following information for each business combination that occurs during the reporting period: 1. a For indemnification assets, all of the following: 1. 1 The amount recognized as of the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 2. 2 A description of the arrangement and the basis for determining the amount of the payment 3. 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. 2. 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. 1 The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the receivables (unless those receivables arise from [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.") or [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A.") by the lessor for which the acquirer shall disclose the amounts recognized as of the acquisition date) 2. 2 The gross contractual amounts receivable 3. 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. 3. c The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed (see Example 5 \[paragraph [805-10-55-37](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-37)\]). 4. d For contingencies, the following disclosures shall be included in the note that describes the business combination: 1. 1 For assets and liabilities arising from contingencies recognized at the acquisition date: 1. 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) 2. ii The nature of the contingencies. An acquirer may aggregate disclosures for assets or liabilities arising from contingencies that are similar in nature. 2. 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. 5. e For each business combination in which the acquirer holds less than 100 percent of the equity interests 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.") at the acquisition date, both of the following: 1. 1 The fair value of the noncontrolling interest in the acquiree at the acquisition date 2. 2 The valuation technique(s) and significant inputs used to measure the fair value of the noncontrolling interest. ##### [805-20-50-2](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:0d43281c1889dd957685766f7e06f97ba4344fe4d95636a66f82a8b70cfd9c95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-1) in the aggregate. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)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](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-1) in the aggregate in interim and annual reporting periods. ##### [805-20-50-3](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:06de78483a7354e3cbaa8e45a674669cdc0ad03cea9dd325beb2c013ad266540 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/805/20/#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. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)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](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-1)in 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. #### The Financial Effects of Adjustments That Relate to Business Combinations That Occurred in the Current or Previous Reporting Periods ##### [805-20-50-4](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:e1c82eab58590dabf9c2fe6d06d2349b5b21202336d1d3f2f767ecda46507981 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-10-50-5](https://asc.understandingaccounting.org/asc/805/10/#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](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-4A) for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Paragraph [805-10-50-5](https://asc.understandingaccounting.org/asc/805/10/#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](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-4A) for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively. ##### [805-20-50-4A](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-4A) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:c9580745fc4c1b700874408bc3348a9bff31bbd9953a50493ebcbd42987484aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the initial accounting for a business combination is incomplete (see paragraphs [805-10-25-13 through 25-14](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-13) ) 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-5): 1. a The reasons why the initial accounting is incomplete 2. b The assets, liabilities, equity interests, or items of consideration for which the initial accounting is incomplete 3. c The nature and amount of any measurement period adjustments recognized during the reporting period in accordance with paragraph [805-10-25-17](https://asc.understandingaccounting.org/asc/805/10/#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. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If the initial accounting for a business combination is incomplete (see paragraphs [805-10-25-13 through 25-14](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-13) ) 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-50-5): 1. a The reasons why the initial accounting is incomplete 2. b The assets, liabilities, equity interests, or items of consideration for which the initial accounting is incomplete 3. c The nature and amount of any measurement period adjustments recognized during the reporting period in accordance with paragraph [805-10-25-17](https://asc.understandingaccounting.org/asc/805/10/#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. #### Exceptions to the Measurement Principle ##### [805-20-50-5](https://asc.understandingaccounting.org/asc/805/20/#805-20-50-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:23:33.413Z to 2026-09-10T01:23:33.413Z Record version: sha256:c1d34978dc7e1f344f7dcc7a6ab3a83af78be296597115abe031427d80e55379 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For any of the practical expedients in paragraph [805-20-30-29](https://asc.understandingaccounting.org/asc/805/20/#805-20-30-29) that an acquirer uses, the acquirer shall disclose all of the following information: 1. a The expedients that have been used 2. b To the extent reasonably possible, a qualitative assessment of the estimated effect of applying each of those expedients. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1) For any of the practical expedients in paragraph [805-20-30-29](https://asc.understandingaccounting.org/asc/805/20/#805-20-30-29) that an acquirer uses, the acquirer shall disclose all of the following information in interim and annual reporting periods: 1. a The expedients that have been used 2. b To the extent reasonably possible, a qualitative assessment of the estimated effect of applying each of those expedients.