{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/50/#25-recognition","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":"805-50","subtopic_title":"Related Issues","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Acquisition of Assets Rather than a Business","heading":"Acquisition Date Recognition of Consideration Exchanged","paragraphs":[{"citation":"805-50-25-1","para":"25-1","html":"
Assets commonly are acquired in exchange transactions that trigger the initial recognition of the assets acquired and any liabilities assumed. If the consideration given in exchange for the assets (or net assets) acquired is in the form of assets surrendered (such as cash), the assets surrendered shall be derecognized at the date of acquisition. If the consideration given is in the form of liabilities incurred or equity interests issued, the liabilities incurred and equity interests issued shall be initially recognized at the date of acquisition. However, if the assets surrendered are nonfinancial assets or in substance nonfinancial assets within the scope of Subtopic 610-20 on gains and losses from the derecognition of nonfinancial assets, the assets surrendered shall be derecognized in accordance with the guidance in Subtopic 610-20 and the assets acquired shall be treated as noncash consideration in accordance with Subtopic 610-20.
","snippet":"Assets commonly are acquired in exchange transactions that trigger the initial recognition of the assets acquired and any liabilities assumed. If the consideration given in exchange for the assets (or net assets) acquire…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc24a04fa071efe3928191932f199493a67af4f2dd4646f0dff802dbf9d86294","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ce4cc048d9760a97b104e1c904771edeb38c62689e1a4e85060c7ee057d86c4","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"block":"Transactions between Entities under Common Control","heading":"Transfer Date Recognition","paragraphs":[{"citation":"805-50-25-2","para":"25-2","html":"
When accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets or the equity interests shall initially recognize the assets and liabilities transferred at the date of transfer. See the Transactions between Entities under Common Control Subsection of Section 805-50-45 for guidance on the presentation of financial statements for the period of transfer and comparative financial statements for prior years.
","snippet":"When accounting for a transfer of assets or exchange of shares between entities under common control, the entity that receives the net assets or the equity interests shall initially recognize the assets and liabilities t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53d6e1055dd3106fd15c7939c08c0e891e1e5ed44cf44a8dbe7b8c5061d3fc5d","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6cc3c21449d684b23fde1c2bdf3fbd58617955dfa157d55e91d622fbe15c09e3","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"block":"New Basis of Accounting (Pushdown)","heading":null,"paragraphs":[{"citation":"805-50-25-3","para":"25-3","html":"
Paragraph superseded by Accounting Standards Update No. 2014-17.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-17.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47d27be4212a3c0f96d2c02c3771981fc09fc43e898deffd426f90479d52e19a","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be55958e3871b6fb8091fb04bba08ee52e6883e6ac2ab3aa234dabbc3b438263","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"block":"Pushdown Accounting","heading":null,"paragraphs":[{"citation":"805-50-25-4","para":"25-4","html":"
An acquiree shall have the option to apply pushdown accounting in its separate financial statements when an acquirer—an entity or individual—obtains control of the acquiree. An acquirer might obtain control of an acquiree in a variety of ways, including any of the following:
  1. a
    By transferring cash or other assets
  2. b
    By incurring liabilities
  3. c
    By issuing equity interests
  4. d
    By providing more than one type of consideration
  5. e
    Without transferring consideration, including by contract alone as discussed in paragraph 805-10-25-11.
","snippet":"An acquiree shall have the option to apply pushdown accounting in its separate financial statements when an acquirer—an entity or individual—obtains control of the acquiree. An acquirer might obtain control of an acquire…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:744ba7a92554d336a3af59548149e1a29fb8cc8434ef949df1ddfdfa188f4072","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"citation":"805-50-25-5","para":"25-5","html":"
The guidance in the General Subsections of Subtopic 810-10 on consolidation, related to determining the existence of a controlling financial interest shall be used to identify the acquirer. If a business combination has occurred but applying that guidance does not clearly indicate which of the combining entities is the acquirer, the factors in paragraphs
805-10-55-11 through 55-15
shall be considered in identifying the acquirer. However, if the acquiree is a variable interest entity (VIE), the primary beneficiary of the acquiree always is the acquirer. The determination of which party, if any, is the primary beneficiary of a VIE shall be made in accordance with the guidance in the Variable Interest Entities Subsections of Subtopic 810-10, not by applying the guidance in the General Subsections of that Subtopic relating to a controlling financial interest or the guidance in paragraphs
805-10-55-11 through 55-15
.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
805-10-65-5The guidance in the General Subsections of Subtopic 810-10 on consolidation, related to determining the existence of a controlling financial interest shall be used to identify the acquirer. If a business combination has occurred but applying that guidance does not clearly indicate which of the combining entities is the acquirer, the factors in paragraphs
805-10-55-11 through 55-15
shall be considered in identifying the acquirer. However, if the acquiree is a variable interest entity (VIE), the primary beneficiary of the acquiree is the acquirer unless the business combination is effected primarily by exchanging equity interests. The determination of which party, if any, is the primary beneficiary of a VIE shall be made in accordance with the guidance in the Variable Interest Entities Subsections of Subtopic 810-10, not by applying the guidance in the General Subsections of that Subtopic relating to a controlling financial interest or the guidance in paragraphs
805-10-55-11 through 55-15
. For a business combination that is effected primarily by exchanging equity interests in which a VIE is acquired, the factors in paragraphs
805-10-55-12 through 55-15
shall be considered in determining which entity is the accounting acquirer.
","snippet":"The guidance in the General Subsections of Subtopic 810-10 on consolidation, related to determining the existence of a controlling financial interest shall be used to identify the acquirer. If a business combination has …","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08b02abfea573a56f1f9c5a6309d4c337d34062e91c1139baa841c5b2dd47d48","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"citation":"805-50-25-6","para":"25-6","html":"
The option to apply pushdown accounting may be elected each time there is a change-in-control event in which an acquirer obtains control of the acquiree. An acquiree shall make an election to apply pushdown accounting before the financial statements are issued (for a Securities and Exchange Commission (SEC) filer and a conduit bond obligor for conduit debt securities that are traded in a public market) or the financial statements are available to be issued (for all other entities) for the reporting period in which the change-in-control event occurred. If the acquiree elects the option to apply pushdown accounting, it must apply the accounting as of the acquisition date.
","snippet":"The option to apply pushdown accounting may be elected each time there is a change-in-control event in which an acquirer obtains control of the acquiree. An acquiree shall make an election to apply pushdown accounting be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5037acbff96c10a23efc825328726f94840521e0c8d0d0d827a89664217a13d","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"citation":"805-50-25-7","para":"25-7","html":"
If the acquiree does not elect to apply pushdown accounting upon a change-in-control event, it can elect to apply pushdown accounting to its most recent change-in-control event in a subsequent reporting period as a change in accounting principle in accordance with Topic 250 on accounting changes and error corrections. Pushdown accounting shall be applied as of the acquisition date of the change-in-control event.
","snippet":"If the acquiree does not elect to apply pushdown accounting upon a change-in-control event, it can elect to apply pushdown accounting to its most recent change-in-control event in a subsequent reporting period as a chang…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d48536592f4e30eacc498ee5b3d1754564a8dd71782a0f366e58cd566f0e27d","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"citation":"805-50-25-8","para":"25-8","html":"
Any subsidiary of an acquiree also is eligible to make an election to apply pushdown accounting to its separate financial statements in accordance with the guidance in paragraphs
805-50-25-4 through 25-7
irrespective of whether the acquiree elects to apply pushdown accounting.
","snippet":"Any subsidiary of an acquiree also is eligible to make an election to apply pushdown accounting to its separate financial statements in accordance with the guidance in paragraphs 805-50-25-4 through 25-7 irrespective of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc7993174266b40d3e7b5e357b79ede2743fb72f4bdda9bc96544918632facf4","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},{"citation":"805-50-25-9","para":"25-9","html":"
The decision to apply pushdown accounting to a specific change-in-control event if elected by an acquiree is irrevocable.
","snippet":"The decision to apply pushdown accounting to a specific change-in-control event if elected by an acquiree is irrevocable.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:350400e6940d799f893e76623734b613cfceaa11cb7558bf7313afeae9869e50","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3c57cf91df5a928b71e29400afa67ab9a8085dce1f76b3455926332aa7fbd22","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02606db6789aaf36964e1b15d0f86a7710832b12d0d38f3fa2fc99c8977f92dc","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02606db6789aaf36964e1b15d0f86a7710832b12d0d38f3fa2fc99c8977f92dc","downloaded_from":"2026-09-10T01:25:03.250Z","last_downloaded_at":"2026-09-10T01:25:03.250Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480060","source_sha256":"f8c4d45e9e6edb02e973145618fe65daae385465b1d78d9249df8bb4e377f0d1"}}