# ASC 805-30-35: Business Combinations — Goodwill or Gain from Bargain Purchase, Including Consideration Transferred — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/30/#35-subsequent-measurement) 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): 2026-09-10T01:24:17.606Z to 2026-09-10T01:24:17.606Z Record version: sha256:f9f6e69ae8050ada3d69d2f52b69421c934e789ed3e658dec7cc34c748c5f798 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/805/30/#35-subsequent-measurement) SEC content: no #### Contingent Consideration ##### [805-30-35-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:17.606Z to 2026-09-10T01:24:17.606Z Record version: sha256:3e09da7eea1c2696d8a406f16bf0f6f0641faeed0c5307b0956562cae9e0da0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some changes in 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 [contingent consideration](https://asc.understandingaccounting.org/glossary/c/#contingent-consideration "Usually an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.") that 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.") recognizes after the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-13) 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. ##### [805-30-35-1A](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:17.606Z to 2026-09-10T01:24:17.606Z Record version: sha256:5ffc176aa0f59c615c1cc81c529b3950b0f575894e18d0c1ab6a1c78757d55e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Goodwill ##### [805-30-35-2](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:17.606Z to 2026-09-10T01:24:17.606Z Record version: sha256:d2c51b2908ca7e0c5655ace58e7ac01d2383c465064d2e0d5bf448b711e80285 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The subsequent measurement of [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.") is addressed in Subtopic 350-20. #### Replacement Share-Based Payment Awards ##### [805-30-35-3](https://asc.understandingaccounting.org/asc/805/30/#805-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:17.606Z to 2026-09-10T01:24:17.606Z Record version: sha256:1f515205f54ed60c421cefe2e531b18da6874ea9704092dd9ab8c51b8d0480ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.