{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/30/#35-subsequent-measurement","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":"805-30","subtopic_title":"Goodwill or Gain from Bargain Purchase, Including Consideration Transferred","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Contingent Consideration","paragraphs":[{"citation":"805-30-35-1","para":"35-1","html":"
Some changes in the fair value of contingent consideration that the acquirer recognizes after the acquisition date may be the result of additional information about facts and circumstances that existed at the acquisition date that the acquirer obtained after that date. Such changes are measurement period adjustments in accordance with paragraphs
805-10-25-13 through 25-18
and Section 805-10-30. However, changes resulting from events after the acquisition date, such as meeting an earnings target, reaching a specified share price, or reaching a milestone on a research and development project, are not measurement period adjustments. The acquirer shall account for changes in the fair value of contingent consideration that are not measurement period adjustments as follows:
  1. a
    Contingent consideration classified as equity shall not be remeasured and its subsequent settlement shall be accounted for within equity.
  2. b
    Contingent consideration classified as an asset or a liability shall be remeasured to fair value at each reporting date until the contingency is resolved. The changes in fair value shall be recognized in earnings unless the arrangement is a hedging instrument for which Topic 815 requires the changes to be initially recognized in other comprehensive income.
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Contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination shall be measured subsequently in accordance with the guidance for contingent consideration arrangements in the preceding paragraph.
","snippet":"Contingent consideration arrangements of an acquiree assumed by the acquirer in a business combination shall be measured subsequently in accordance with the guidance for contingent consideration arrangements in the prece…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ffc176aa0f59c615c1cc81c529b3950b0f575894e18d0c1ab6a1c78757d55e6","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56534a650509f82f3a143985285e1bcdb7581a9bfe0f4a87d3cd325e157c82c5","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}},{"block":null,"heading":"Goodwill","paragraphs":[{"citation":"805-30-35-2","para":"35-2","html":"
The subsequent measurement of goodwill is addressed in Subtopic 350-20.
","snippet":"The subsequent measurement of goodwill is addressed in Subtopic 350-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2c51b2908ca7e0c5655ace58e7ac01d2383c465064d2e0d5bf448b711e80285","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:563d43904b260d0323951c6fd7b5d6ff31cf45687dbc345ff4368577859bb771","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}},{"block":null,"heading":"Replacement Share-Based Payment Awards","paragraphs":[{"citation":"805-30-35-3","para":"35-3","html":"
Topic 718 provides guidance on subsequent measurement and accounting for the portion of replacement share-based payment awards issued by an acquirer that is attributable to future goods or services.
","snippet":"Topic 718 provides guidance on subsequent measurement and accounting for the portion of replacement share-based payment awards issued by an acquirer that is attributable to future goods or services.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f515205f54ed60c421cefe2e531b18da6874ea9704092dd9ab8c51b8d0480ed","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d83a5a7bd9abf7e78266daef9215e7f6853cc5e05dcbcb9227446230e587e445","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9f6e69ae8050ada3d69d2f52b69421c934e789ed3e658dec7cc34c748c5f798","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9f6e69ae8050ada3d69d2f52b69421c934e789ed3e658dec7cc34c748c5f798","downloaded_from":"2026-09-10T01:24:17.606Z","last_downloaded_at":"2026-09-10T01:24:17.606Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479613","source_sha256":"3e63f46a3d69af127ddb06509e5e596f0bdf69f5a67d5d6aaa53bbac1ab77871"}}