# ASC 805-40-15: Business Combinations — Reverse Acquisitions — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/805/40/#15-scope-and-scope-exceptions)

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## ASC 805-40-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/805/40/#15-scope-and-scope-exceptions)

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#### Overall Guidance

##### [805-40-15-1](https://asc.understandingaccounting.org/asc/805/40/#805-40-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 805-10-15, with specific transaction qualifications noted below.

#### Transactions

##### [805-40-15-2](https://asc.understandingaccounting.org/asc/805/40/#805-40-15-2)

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The guidance in this Subtopic applies to [business combinations](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.") that are [reverse acquisitions](https://asc.understandingaccounting.org/glossary/r/#reverse-acquisition "An acquisition in which the entity that issues securities (the legal acquirer) is identified as the acquiree for accounting purposes based on the guidance in paragraphs 805-10-55-11805-10-55-12805-10-55-13805-10-55-14805-10-55-15. The entity whose equity interests are acquired (the legal acquiree) must be the acquirer for accounting purposes for the transaction to be considered a reverse acquisition.").