# ASC 805-30-50: Business Combinations — Goodwill or Gain from Bargain Purchase, Including Consideration Transferred — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/30/#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): 2026-09-10T01:24:21.604Z to 2026-09-10T01:24:21.604Z Record version: sha256:439146d75e219609567c089f05538ef4ea2825ead65778b5c56bf4964c684ec0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/30/#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 ##### [805-30-50-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:24:21.604Z to 2026-09-10T01:24:21.604Z Record version: sha256:29b5825351fca9a20e3d2cfcf037666263850b9c7ce2b6efbb37337406e08426 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 A qualitative description of the factors that make up the [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.") recognized, such as expected synergies from combining operations of 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.") and the acquirer, intangible assets that do not qualify for separate recognition, or other factors. 2. b The acquisition-date [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 total consideration transferred and the acquisition-date fair value of each major class of consideration, such as the following: 1. 1 Cash 2. 2 Other tangible or intangible assets, including a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or subsidiary of the acquirer 3. 3 Liabilities incurred, for example, a liability for [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.") 4. 4 Equity interests of the acquirer, including the number of instruments or interests issued or issuable and the method of determining the fair value of those instruments or interests. 3. c For contingent consideration arrangements, 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. 4. d The total amount of goodwill that is expected to be deductible for tax purposes. 5. e If the acquirer is required to disclose segment information in accordance with Subtopic 280-10, the amount of goodwill by reportable segment. If the assignment of goodwill to reporting units required by paragraphs [350-20-35-41 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41) has not been completed as of the date the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall disclose that fact. 6. f In a bargain purchase (see paragraphs [805-30-25-2 through 25-4](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) ), both of the following: 1. 1 The amount of any gain recognized in accordance with paragraph [805-30-25-2](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) and the line item in the income statement in which the gain is recognized 2. 2 A description of the reasons why the transaction resulted in a gain. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)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 all of the following information for each business combination that occurs during the reporting period: 1. a A qualitative description of the factors that make up the [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.") recognized, such as expected synergies from combining operations of 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.") and the acquirer, intangible assets that do not qualify for separate recognition, or other factors. 2. b The acquisition-date [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 total consideration transferred and the acquisition-date fair value of each major class of consideration, such as the following: 1. 1 Cash 2. 2 Other tangible or intangible assets, including a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or subsidiary of the acquirer 3. 3 Liabilities incurred, for example, a liability for [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.") 4. 4 Equity interests of the acquirer, including the number of instruments or interests issued or issuable and the method of determining the fair value of those instruments or interests. 3. c For contingent consideration arrangements, 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. 4. d The total amount of goodwill that is expected to be deductible for tax purposes. 5. e If the acquirer is required to disclose segment information in accordance with Subtopic 280-10, the amount of goodwill by reportable segment. If the assignment of goodwill to reporting units required by paragraphs [350-20-35-41 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41) has not been completed as of the date the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall disclose that fact. 6. f In a bargain purchase (see paragraphs [805-30-25-2 through 25-4](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) ), both of the following: 1. 1 The amount of any gain recognized in accordance with paragraph [805-30-25-2](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) and the line item in the income statement in which the gain is recognized 2. 2 A description of the reasons why the transaction resulted in a gain. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. 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 A qualitative description of the factors that make up the [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.") recognized, such as expected synergies from combining operations of 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.") and the acquirer, intangible assets that do not qualify for separate recognition, or other factors. 2. b The acquisition-date [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 total consideration transferred and the acquisition-date fair value of each major class of consideration, such as the following: 1. 1 Cash 2. 2 Other tangible or intangible assets, including a [business](https://asc.understandingaccounting.org/glossary/b/#business "Paragraphs 805-10-55-3A805-10-55-4805-10-55-5805-10-55-6 and 805-10-55-8805-10-55-9 define what is considered a business.") or subsidiary of the acquirer 3. 3 Liabilities incurred, for example, a liability for [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.") 4. 4 Equity interests of the acquirer, including the number of instruments or interests issued or issuable and the method of determining the fair value of those instruments or interests. 3. c For contingent consideration arrangements, 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. 4. d The total amount of goodwill that is expected to be deductible for tax purposes. 5. e If the acquirer is required to disclose segment information in accordance with Subtopic 280-10, the amount of goodwill by reportable segment. If the assignment of goodwill to reporting units required by paragraphs [350-20-35-41 through 35-44](https://asc.understandingaccounting.org/asc/350/20/#350-20-35-41) has not been completed as of the date the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall disclose that fact. 6. f In a bargain purchase (see paragraphs [805-30-25-2 through 25-4](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) ), both of the following: 1. 1 The amount of any gain recognized in accordance with paragraph [805-30-25-2](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) and the line item in the income statement in which the gain is recognized 2. 2 A description of the reasons why the transaction resulted in a gain. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [805-30-50-2](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:24:21.604Z to 2026-09-10T01:24:21.604Z Record version: sha256:2884958ee6ca23454237c8f62ca0e3096b852d1b084c092f41e52e8c9554999e 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 [805-30-50-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1) 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 [805-30-50-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1) in the aggregate in interim and annual reporting periods. ##### [805-30-50-3](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:24:21.604Z to 2026-09-10T01:24:21.604Z Record version: sha256:146ecfbbd2b9f93641c8c470af9707b03411492e294ae8f0761b5450fa6c1879 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 [805-30-50-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1) 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 [805-30-50-1](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-1)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 ##### [805-30-50-4](https://asc.understandingaccounting.org/asc/805/30/#805-30-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:24:21.604Z to 2026-09-10T01:24:21.604Z Record version: sha256:ab8f96aeb31877845c44b0f9971b02dfb5b0345c8f3f9ad2418a16b8bcc18496 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 following information for each material business combination or in the aggregate for individually immaterial business combinations that are material collectively: 1. a For each reporting period after the acquisition date until the entity collects, sells, or otherwise loses the right to a contingent consideration asset, or until the entity settles a contingent consideration liability or the liability is cancelled or expires, all of the following: 1. 1 Any changes in the recognized amounts, including any differences arising upon settlement 2. 2 Any changes in the range of outcomes (undiscounted) and the reasons for those changes 3. 3 The disclosures required by Section 820-10-50. 2. b A reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period as required by paragraph [350-20-50-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1). A [private company](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.") or [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that adopts the accounting alternative for amortizing goodwill in Subtopic 350-20 is not required to disclose the reconciliation. 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, 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: 1. a For each reporting period after the acquisition date until the entity collects, sells, or otherwise loses the right to a contingent consideration asset, or until the entity settles a contingent consideration liability or the liability is cancelled or expires, all of the following: 1. 1 Any changes in the recognized amounts, including any differences arising upon settlement 2. 2 Any changes in the range of outcomes (undiscounted) and the reasons for those changes 3. 3 The disclosures required by Section 820-10-50. 2. b A reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period as required by paragraph [350-20-50-1](https://asc.understandingaccounting.org/asc/350/20/#350-20-50-1). A [private company](https://asc.understandingaccounting.org/glossary/p/#private-company "An entity other than a public business entity, a not-for-profit entity, or an employee benefit plan within the scope of Topics 960 through 965 on plan accounting.") or [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") that adopts the accounting alternative for amortizing goodwill in Subtopic 350-20 is not required to disclose the reconciliation.