# ASC 805-50: Business Combinations — Related Issues Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/50/) 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): 2026-09-10T01:24:51.500Z to 2026-09-10T01:25:42.308Z Record version: sha256:c1356ead896804e896f5b2c4dfcff9317dc59f2dc0cf6bb82fd5ea23c6d48154 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50: Business Combinations — Related Issues ### Machine-generated study aids ```json { "summary": "ASC 805-50 collects the transactions that fall outside the acquisition method of Topic 805: asset acquisitions that are not businesses, transfers between entities under common control, formation of master limited partnerships, and pushdown accounting. Asset acquisitions are recorded at cost (including transaction costs) and allocated to the individual assets on a relative fair value basis with no goodwill; common-control transfers are recorded by the receiving entity at the transferor's (or parent's) carrying amounts with retrospective presentation for periods under common control. Pushdown accounting is an optional, irrevocable election by an acquiree to reflect the acquirer's new basis in its separate financial statements.", "key_points": [ "The Subtopic has its own discrete scope separate from 805-10-15 (805-50-15-1); asset acquisition guidance does not apply to a primary beneficiary's initial measurement of a non-business VIE (805-50-15-4) or to joint venture formations, which follow 805-60 (805-50-15-4A).", "In an asset acquisition, assets are recognized at their cost to the acquiring entity, which generally includes transaction costs, and no gain or loss is recognized unless the fair value of noncash assets given differs from their carrying amounts (805-50-30-1; 805-50-30-2).", "The cost of a group of assets acquired outside a business combination is allocated to the individual assets and liabilities based on their relative fair values and shall not give rise to goodwill (805-50-30-3).", "In a common-control transfer, the receiving entity initially recognizes the transferred assets and liabilities at the transfer date (805-50-25-2) and measures them at the transferring entity's carrying amounts—or the parent's historical cost if those differ (805-50-30-5).", "The receiving entity presents results as though the transfer occurred at the beginning of the period, eliminating intra-entity effects, and retrospectively adjusts prior-year comparatives, but only for periods during which the entities were under common control (805-50-45-2 through 45-5).", "No new basis of accounting is appropriate for master limited partnership rollups (with transaction costs expensed), specified dropdowns, rollouts, or reorganizations (805-50-30-7); units issued for services not carrying over are compensation (805-50-30-9).", "Pushdown accounting is an option an acquiree (and any of its subsidiaries, independently) may elect upon a change-in-control event, must be elected before the financial statements are issued or available to be issued, is applied as of the acquisition date, and is irrevocable (805-50-25-4 through 25-9); goodwill is recognized but any bargain purchase gain goes to additional paid-in capital, not income (805-50-30-11)." ], "categories": [ "Business combinations", "Initial measurement", "Presentation", "Consolidation" ], "audience_level": "intermediate", "student_note": "Exam favorite: the asset-acquisition vs. business-combination fork—transaction costs are capitalized (not expensed) and no goodwill arises in an asset acquisition, the opposite of the acquisition method. Also commonly missed: common-control comparatives are restated only for periods the entities were actually under common control, and pushdown bargain purchase gains hit APIC rather than earnings.", "related_topics": [ "805-10", "805-20", "805-30", "805-60", "810-10", "610-20" ], "key_concepts": [ "asset acquisition", "relative fair value allocation", "common control transaction", "carryover basis", "pushdown accounting", "change-in-control event", "master limited partnership", "bargain purchase gain to apic" ] } ``` Source downloaded (UTC): 2026-09-10T01:24:51.500Z to 2026-09-10T01:24:51.500Z Record version: sha256:a5503b1bce32bc3c257419e3324de9d4475066ba68bdf78e493b9660706905d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/805/50/#00-status) SEC content: no ##### [805-50-00-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:51.500Z to 2026-09-10T01:24:51.500Z Record version: sha256:e189ff4d806cdbb936d0ba21a4f00646b950979023076e18a00ffb06947fd688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquireeAmendedAccounting Standards Update No. 2010-0701/28/2010
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Business CombinationAmendedAccounting Standards Update No. 2010-0701/28/2010
Change in Accounting PrincipleAddedAccounting Standards Update No. 2014-1711/18/2014
Conduit Debt SecuritiesAddedAccounting Standards Update No. 2014-1711/18/2014
Control (3rd def.)AddedAccounting Standards Update No. 2014-1711/18/2014
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
DropdownAmendedAccounting Standards Update No. 2015-0604/30/2015
Equity InterestsAmendedAccounting Standards Update No. 2010-0701/28/2010
Financial Statements Are Available to Be IssuedAddedAccounting Standards Update No. 2014-1711/18/2014
Financial Statements Are IssuedAddedAccounting Standards Update No. 2014-1711/18/2014
GoodwillAmendedAccounting Standards Update No. 2023-0508/23/2023
GoodwillAmendedAccounting Standards Update No. 2010-0701/28/2010
In Substance Nonfinancial AssetAddedAccounting Standards Update No. 2017-0502/22/2017
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
Primary BeneficiaryAddedAccounting Standards Update No. 2025-0305/12/2025
Pushdown AccountingAmendedAccounting Standards Update No. 2014-1711/18/2014
Securities and Exchange Commission (SEC) FilerAddedAccounting Standards Update No. 2014-1711/18/2014
805-50-05-1SupersededAccounting Standards Update No. 2014-1711/18/2014
805-50-05-2AmendedAccounting Standards Update No. 2014-1711/18/2014
805-50-05-6AmendedAccounting Standards Update No. 2014-1711/18/2014
805-50-05-7AmendedAccounting Standards Update No. 2014-1711/18/2014
805-50-05-8SupersededAccounting Standards Update No. 2014-1711/18/2014
805-50-05-9AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-15-4AAddedAccounting Standards Update No. 2023-0508/23/2023
805-50-15-6AmendedAccounting Standards Update No. 2010-0701/28/2010
805-50-15-6BAddedAccounting Standards Update No. 2010-0701/28/2010
805-50-15-7AmendedAccounting Standards Update No. 2014-1711/18/2014
805-50-15-8SupersededAccounting Standards Update No. 2014-1711/18/2014
805-50-15-9SupersededAccounting Standards Update No. 2014-1711/18/2014
805-50-15-10AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-15-11AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-25-1AmendedMaintenance Update 2021-09 (PDF)08/20/2021
805-50-25-1AmendedAccounting Standards Update No. 2017-0502/22/2017
805-50-25-3SupersededAccounting Standards Update No. 2014-1711/18/2014
805-50-25-4 through 25-9
AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-25-5AmendedAccounting Standards Update No. 2025-0305/12/2025
805-50-30-1 through 30-3
AmendedAccounting Standards Update No. 2010-0802/02/2010
805-50-30-1AmendedAccounting Standards Update No. 2017-0502/22/2017
805-50-30-2AmendedAccounting Standards Update No. 2017-0502/22/2017
805-50-30-10 through 30-12
AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-35-2AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-50-5AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-50-6AddedAccounting Standards Update No. 2014-1711/18/2014
805-50-55-1AddedAccounting Standards Update No. 2010-0802/02/2010
805-50-65-1AddedAccounting Standards Update No. 2014-1711/18/2014
Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:3841992e2f6fb80522e9c12edf2b62a180a29868e587abed4ed1a87df58be9e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/805/50/#05-overview-and-background) SEC content: no ##### [805-50-05-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:0080fda9d49a92d0cf4c4ba5dd0c37a3181ac2174800e0c6e5eac0cf37e6fb2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-17](https://asc.understandingaccounting.org/updates/asu-2014-17/). ##### [805-50-05-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:4912364bb70129a63fee26a476bcfaf1d3d4ddeb431094d871c907af1322cf14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic presents guidance in the following Subsections: 1. a General 2. b Acquisition of Assets Rather than a Business 3. c Transactions Between Entities Under Common Control 4. d Formation of a Master Limited Partnership 5. e Pushdown Accounting. ### Acquisition of Assets Rather than a Business ##### [805-50-05-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:30b4654866e0821836e44a185129d26f2b7cc75ddbd2b5097510e86389fb739f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Acquisition of Assets Rather than a Business Subsections address a transaction in which the assets acquired and liabilities assumed do not constitute 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.") and require such a transaction to be accounted for as an asset acquisition. However, these Subsections do not provide guidance for the primary beneficiary of a variable interest entity (VIE) if the VIE does not constitute a business. ### Transactions between Entities under Common Control ##### [805-50-05-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:931960019337d8f8e80da19e5fc87690a2caac5fad1ce62487a85973bb85ea35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As noted in paragraph [805-10-15-4(c)](https://asc.understandingaccounting.org/asc/805/10/#805-10-15-4), the guidance related 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.") does not apply to combinations between entities or [businesses](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.") under common control. ##### [805-50-05-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:d417bcea7eea758ebc4bd9d56899e511db49f0fd1a14f3d7401fb2a19ab9ce24 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some transfers of net assets or exchanges of shares between entities under common control result in a change in the reporting entity. In practice, the method that many entities have used to account for those transactions is similar to the pooling-of-interests method. The Transactions Between Entities Under Common Control Subsections provide guidance on preparing financial statements and related disclosures for the entity that receives the net assets. ### Formation of a Master Limited Partnership ##### [805-50-05-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:9b2d9267aaf30a2a4b0e33f8ba60b1f0b61b3a5220ba65712e173e29f08a5eb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Formation of a Master Limited Partnership Subsections provide guidance on when a new basis of accounting may be recorded for the assets and liabilities of a master limited partnership. #### Master Limited Partnership Transactions ##### [805-50-05-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:e5dd24b0c99fecb4304ca66aa6d1acb9ef039ede2a481cfaf3c005f37d00acc0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Master limited partnerships are partnerships in which interests are publicly traded. Most master limited partnerships are formed from assets in existing businesses. Typically, the general partner of the master limited partnership is affiliated with the existing [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.") (that is, the master limited partnership is usually operated as an extension of or complementary to the business of the general partner). The purposes for forming a master limited partnership vary. They can be formed to realize the value of undervalued assets, to pass income and tax-deductible losses directly through to owners, to raise capital, to combine several existing partnerships, or as a vehicle to enable entities to sell, spin off, or liquidate existing operations. A master limited partnership may be created in a variety of ways. Whether a particular transaction is 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.") that should be accounted for using the acquisition method or a transaction between entities under common control can be determined only after a careful analysis of all facts and circumstances. The Formation of a Master Limited Partnership Subsections identify specific transactions involving master limited partnerships and provide guidance on whether a new basis of accounting is appropriate. ##### [805-50-05-8](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:80b525fdf7e5aad002a0cb0dfb91da4a424d840a14cf98450e0166ac45d28522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-17](https://asc.understandingaccounting.org/updates/asu-2014-17/). ### Pushdown Accounting ##### [805-50-05-9](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:54.543Z to 2026-09-10T01:24:54.543Z Record version: sha256:6cf7faaf94ed03b65fe0d388bcf9a1fb08789daa775aa3c041f0a9303c9c6015 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Pushdown Accounting Subsections addresses whether and at what threshold an [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.") that is a business or [nonprofit activity](https://asc.understandingaccounting.org/glossary/n/#nonprofit-activity "An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing benefits, other than goods or services at a profit or profit equivalent, as a fulfillment of an entity's purpose or mission (for example, goods or services to beneficiaries, customers, or members). As with a not-for-profit entity, a nonprofit activity possesses characteristics that distinguish it from a business or a for-profit business entity.") can apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") in its separate financial statements. Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:cb506faa8b1bcfbc0f0e271531c8885578bca1545a8e2ce2d1deafb6dd4f463e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/50/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-50-15-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:f9d87d2c25eb731f9d25d9869a36bfa3b0d2b18f5ada21404446e2e9412e9612 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic has its own discrete scope, which is separate and distinct from the pervasive scope for this Topic as outlined in Section 805-10-15. ### Acquisition of Assets Rather than a Business #### Entities ##### [805-50-15-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:b2987633d02466468ee82b9cf3679437f2136cdf79b65e069c09f0a9af2066ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition of Assets Rather than a Business Subsections applies to all entities. #### Transactions ##### [805-50-15-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:29b10eb1e495ceff3b6cece3218c5051f3de32dfb884ed4e9e17ceb974495423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition of Assets Rather than a Business Subsections applies to a transaction or event in which assets acquired and liabilities assumed do not constitute 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."). ##### [805-50-15-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:c4597ab2c24d1f11baab4ecb4f8c7a90d3b53c0587a7f985a53c436501cc3f36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition of Assets Rather than a Business Subsections does not apply to the initial measurement and recognition by a primary beneficiary of the assets and liabilities of a variable interest entity (VIE) when the VIE does not constitute a business. Guidance for such a VIE is provided in Section 810-10-30. ##### [805-50-15-4A](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-4A) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:031853266b40bd7edf285a8436e2445c58c5462142f4c13d4906dc2ff70496af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Acquisition of Assets Rather than a Business Subsections does not apply to the initial measurement and recognition of assets and liabilities by a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") upon formation. Guidance for joint venture formations is provided in Subtopic 805-60. ### Transactions between Entities under Common Control #### Entities ##### [805-50-15-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:8ada56a08497e43c26dfe12f32af04e57986c895631c4aaa92741c859a9733d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Transactions between Entities under Common Control Subsections applies to all entities. #### Transactions ##### [805-50-15-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:66254042f13e66fbd2b858648f63add079decd67240b658b2f7115a305aa3b73 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Transactions between Entities under Common Control Subsections applies to combinations between entities or [businesses](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.") under common control. The following are examples of those types of transactions: 1. a An entity charters a newly formed entity and then transfers some or all of its net assets to that newly chartered entity. 2. b A parent transfers the net assets of a wholly owned subsidiary into the parent and liquidates the subsidiary. That transaction is a change in legal organization but not a change in the reporting entity. 3. c A parent transfers its controlling interest in several partially owned subsidiaries to a new wholly owned subsidiary. That also is a change in legal organization but not in the reporting entity. 4. d A parent exchanges its ownership interests or the net assets of a wholly owned subsidiary for additional shares issued by the parent's less-than-wholly-owned subsidiary, thereby increasing the parent's percentage of ownership in the less-than-wholly-owned subsidiary but leaving all of the existing [noncontrolling interest](https://asc.understandingaccounting.org/glossary/n/#noncontrolling-interest "The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.") outstanding. 5. e A parent's less-than-wholly-owned subsidiary issues its shares in exchange for shares of another subsidiary previously owned by the same parent, and the noncontrolling shareholders are not party to the exchange. That is not 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.") from the perspective of the parent. 6. f A limited liability company is formed by combining entities under common control. 7. g Two or more [not-for-profit entities](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.") (NFPs) that are effectively controlled by the same board members transfer their net assets to a new entity, dissolve the former entities, and appoint the same board members to the newly combined entity. ##### [805-50-15-6A](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-6A) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:66662f7b39af560f92e320d010e307e0442beabc0d5295a84581e7b0e0dbe6d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Transactions between Entities under Common Control Subsections does not apply to the initial measurement by a primary beneficiary of the assets, liabilities, and noncontrolling interests of a VIE if the primary beneficiary of a VIE and the VIE are under common control. Guidance for such a VIE is provided in Section 810-10-30. ##### [805-50-15-6B](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-6B) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:af14f3450563151f2deba73b65ce56afe819b88adaa1facf5c32c80f41c969d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mergers and acquisitions between or among two or more NFPs, all of which benefit a particular group of citizens, shall not be considered common control transactions solely because those entities benefit a particular group. The mission, operations, and historical sources of support of two or more NFPs may be closely linked to benefiting a particular group of citizens. However, that group neither owns nor controls the NFPs. ### Formation of a Master Limited Partnership #### Entities ##### [805-50-15-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:12c8a1a323567c7c1ce1f43b9ef9f33378d51b085e86fc564ddc7f979af7a669 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Formation of a Master Limited Partnership Subsections applies to a publicly traded master limited partnership formed from assets of existing [businesses](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."). Paragraph [805-50-05-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-05-7) explains that, typically, the general partner of the master limited partnership is affiliated with the existing business. ##### [805-50-15-8](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:5a7e3c7898a0ef3193626178f7a6197ac038f9cb3093f49486405e602c10b890 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-17](https://asc.understandingaccounting.org/updates/asu-2014-17/). ##### [805-50-15-9](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:38e978d04d991c76cfef85b716d372a3e7ff1665c9f759194f347dc8fcb08505 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-17](https://asc.understandingaccounting.org/updates/asu-2014-17/). ### Pushdown Accounting ##### [805-50-15-10](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:c1e69b80be6c02001813ab60ec6f68e42184e2f9e7143671d4cb7c535d05ab9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Pushdown Accounting Subsections applies to the separate financial statements of an [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 its subsidiaries. #### Transactions ##### [805-50-15-11](https://asc.understandingaccounting.org/asc/805/50/#805-50-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:24:58.341Z to 2026-09-10T01:24:58.341Z Record version: sha256:2cb130dc6c02e92f738526d1e4607f6bca4f8d3b8b002e1587fa3a75fbf54e76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Pushdown Accounting Subsections does not apply to transactions in paragraph [805-10-15-4](https://asc.understandingaccounting.org/asc/805/10/#805-10-15-4). Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:02606db6789aaf36964e1b15d0f86a7710832b12d0d38f3fa2fc99c8977f92dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/805/50/#25-recognition) SEC content: no ### Acquisition of Assets Rather than a Business #### Acquisition Date Recognition of Consideration Exchanged ##### [805-50-25-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:cc24a04fa071efe3928191932f199493a67af4f2dd4646f0dff802dbf9d86294 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") 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](https://asc.understandingaccounting.org/glossary/i/#in-substance-nonfinancial-asset "Paragraphs 610-20-15-5610-20-15-6610-20-15-7610-20-15-8 define an in substance nonfinancial asset.") 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. ### Transactions between Entities under Common Control #### Transfer Date Recognition ##### [805-50-25-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:53d6e1055dd3106fd15c7939c08c0e891e1e5ed44cf44a8dbe7b8c5061d3fc5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") 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](https://asc.understandingaccounting.org/asc/805/50/#45-other-presentation-matters) for guidance on the presentation of financial statements for the period of transfer and comparative financial statements for prior years. ### New Basis of Accounting (Pushdown) ##### [805-50-25-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:47d27be4212a3c0f96d2c02c3771981fc09fc43e898deffd426f90479d52e19a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-17](https://asc.understandingaccounting.org/updates/asu-2014-17/). ### Pushdown Accounting ##### [805-50-25-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:744ba7a92554d336a3af59548149e1a29fb8cc8434ef949df1ddfdfa188f4072 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [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.") shall have the option to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") in its separate financial statements when an [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.")—an entity or individual—obtains [control](https://asc.understandingaccounting.org/glossary/c/#control "The same as the meaning of controlling financial interest in paragraph 810-10-15-8.") 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-11). ##### [805-50-25-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:08b02abfea573a56f1f9c5a6309d4c337d34062e91c1139baa841c5b2dd47d48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-11) shall be considered in identifying the acquirer. However, if the acquiree is a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") (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](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-11) . Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [805-10-65-5](https://asc.understandingaccounting.org/asc/805/10/#805-10-65-5)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](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.") 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-11) shall be considered in identifying the acquirer. However, if the acquiree is a [variable interest entity](https://asc.understandingaccounting.org/glossary/v/#variable-interest-entity "A legal entity subject to consolidation according to the provisions of the Variable Interest Entities Subsections of Subtopic 810-10.") (VIE), the [primary beneficiary](https://asc.understandingaccounting.org/glossary/p/#primary-beneficiary "An entity that consolidates a variable interest entity (VIE). See paragraphs 810-10-25-38 through 25-38J for guidance on determining 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-11) . 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](https://asc.understandingaccounting.org/asc/805/10/#805-10-55-12) shall be considered in determining which entity is the accounting acquirer. ##### [805-50-25-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:f5037acbff96c10a23efc825328726f94840521e0c8d0d0d827a89664217a13d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The option to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") may be elected each time there is a change-in-control event in which an [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.") obtains [control](https://asc.understandingaccounting.org/glossary/c/#control "The same as the meaning of controlling financial interest in paragraph 810-10-15-8.") 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."). An acquiree shall make an election to apply pushdown accounting before the [financial statements are issued](https://asc.understandingaccounting.org/glossary/f/#financial-statements-are-issued "Financial statements are considered issued when they are widely distributed to shareholders and other financial statement users for general use and reliance in a form and format that complies with GAAP. (U.S. Securities and Exchange Commission [SEC] registrants also are required to consider the guidance in paragraph 855-10-S99-2.)") (for a [Securities and Exchange Commission (SEC) filer](https://asc.understandingaccounting.org/glossary/s/#securities-and-exchange-commission-sec-filer "An entity that is required to file or furnish its financial statements with either of the following: The Securities and Exchange Commission (SEC) With respect to an entity subject to Section 12(i) of the Securities Exchange Act of 1934, as amended, the appropriate agency under that Section. Financial statements for other entities that are not otherwise SEC filers whose financial statements are included in a submission by another SEC filer are not included within this definition.") and a conduit bond obligor for [conduit debt securities](https://asc.understandingaccounting.org/glossary/c/#conduit-debt-securities "Certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing financing for a specific third party (the conduit bond obligor) that is not a part of the state or local government's financial reporting entity. Although conduit debt securities bear the name of the governmental entity that issues them, the governmental entity often has no obligation for such debt beyond the resources provided by a lease or loan agreement with the third party on whose behalf the securities are issued. Further, the conduit bond obligor is responsible for any future financial reporting requirements.") that are traded in a public market) or the [financial statements are available to be issued](https://asc.understandingaccounting.org/glossary/f/#financial-statements-are-available-to-be-issued "Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders. The process involved in creating and distributing the financial statements will vary depending on an entity's management and corporate governance structure as well as statutory and regulatory requirements.") (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](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree."). ##### [805-50-25-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:9d48536592f4e30eacc498ee5b3d1754564a8dd71782a0f366e58cd566f0e27d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If 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.") does not elect to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") 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](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered 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. ##### [805-50-25-8](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:bc7993174266b40d3e7b5e357b79ede2743fb72f4bdda9bc96544918632facf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any subsidiary of an [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.") also is eligible to make an election to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") to its separate financial statements in accordance with the guidance in paragraphs [805-50-25-4 through 25-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-4) irrespective of whether the acquiree elects to apply pushdown accounting. ##### [805-50-25-9](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:03.250Z to 2026-09-10T01:25:03.250Z Record version: sha256:350400e6940d799f893e76623734b613cfceaa11cb7558bf7313afeae9869e50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The decision to apply pushdown accounting to a specific change-in-control event if elected by an acquiree is irrevocable. Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:4f04af8a7047f45a95d107dc7c11cd0b4067c543e615fc978fac903b24cf8b0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/805/50/#30-initial-measurement) SEC content: no ### Acquisition of Assets Rather than a Business #### Determining Cost ##### [805-50-30-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:019e517bb3fd4f7b6d7dca76cfef9358af05eab7acbea5b64f04191184b60c86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-50-25-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-1) discusses exchange transactions that trigger the initial recognition of assets acquired and liabilities assumed. Assets are recognized based on their cost to the acquiring entity, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless 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 noncash assets given as consideration differs from the assets' carrying amounts on the acquiring entity's books. For transactions involving nonmonetary consideration within the scope of Topic 845, an acquirer must first determine if any of the conditions in paragraph [845-10-30-3](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-3) apply. If the consideration given is nonfinancial assets or [in substance nonfinancial assets](https://asc.understandingaccounting.org/glossary/i/#in-substance-nonfinancial-asset "Paragraphs 610-20-15-5610-20-15-6610-20-15-7610-20-15-8 define an in substance nonfinancial asset.") within the scope of Subtopic 610-20 on gains and losses from the derecognition of nonfinancial assets, the assets acquired shall be treated as noncash consideration and any gain or loss shall be recognized in accordance with Subtopic 610-20. ##### [805-50-30-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:527ecec67db12ed6a6b8d277558a22232c10a55e438f690b782b26a728310281 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Asset acquisitions in which the consideration given is cash are measured by the amount of cash paid, which generally includes the transaction costs of the asset acquisition. However, if the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") issued) and no other generally accepted accounting principles (GAAP) apply (for example, Topic 845 on nonmonetary transactions or Subtopic 610-20), measurement is based on either the cost which shall be measured based on the fair value of the consideration given or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. For transactions involving nonmonetary consideration within the scope of Topic 845, an acquirer must first determine if any of the conditions in paragraph [845-10-30-3](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-3) apply. If the consideration given is nonfinancial assets or in substance nonfinancial assets within the scope of Subtopic 610-20, the assets acquired shall be treated as noncash consideration and any gain or loss shall be recognized in accordance with Subtopic 610-20. #### Allocating Cost ##### [805-50-30-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:26a7de2edf6d0d7bef7906c891b0df4fb62755e0e9962597e969e33172303ef1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Acquiring assets in groups requires not only ascertaining the cost of the asset (or net asset) group but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. The cost of such a group is determined using the concepts described in the preceding two paragraphs. The cost of a group of assets acquired in an asset acquisition shall be allocated to the individual assets acquired or liabilities assumed based on their relative fair values and shall not give rise to [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."). The allocated cost of an asset that the entity does not intend to use or intends to use in a way that is not its highest and best use, such as a brand name, shall be determined based on its relative fair value. See paragraph [805-50-55-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-55-1) for an illustration of the relative fair value method to assets acquired outside a business combination. ##### [805-50-30-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:dbfb4dbd1cb19bd6371c71079b95866c24d46c0a160c9ad27c376de1ba5b2759 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [740-10-25-49 through 25-55](https://asc.understandingaccounting.org/asc/740/10/#740-10-25-49) for guidance on the accounting for acquired temporary differences in certain purchase transactions that are not accounted for as [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."). ### Transactions between Entities under Common Control #### Transfer Date Measurement ##### [805-50-30-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:daf22fce3e86d021e3a5208ba6bb3490f65423b5527eb1e1a0d7cbf2787b3f62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") shall initially measure the recognized assets and liabilities transferred at their carrying amounts in the accounts of the transferring entity at the date of transfer. If the carrying amounts of the assets and liabilities transferred differ from the historical cost of the parent of the entities under common control, for example, because [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") had not been applied, then the financial statements of the receiving entity shall reflect the transferred assets and liabilities at the historical cost of the parent of the entities under common control. ##### [805-50-30-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:b58a4597ea3b2aca7a1008efbec5f11c2add04dabe7f6c9f36a0386d537f1e29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some instances, the entity that receives the net assets or equity interests (the receiving entity) and the entity that transferred the net assets or equity interests (the transferring entity) may account for similar assets and liabilities using different accounting methods. In such circumstances, the carrying amounts of the assets and liabilities transferred may be adjusted to the basis of accounting used by the receiving entity if the change would be preferable. Any such change in accounting method shall be applied retrospectively, and financial statements presented for prior periods shall be adjusted unless it is impracticable to do so. Section 250-10-45 provides guidance if retrospective application is impracticable. ### Formation of a Master Limited Partnership ##### [805-50-30-7](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:32342da0c146dc1012dac84dd81c98c070287b8b5f297ebed7911452f64318ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because of such factors as the consideration of common ownership and changes in control, a new basis of accounting is not appropriate for any of the following transactions that create a master limited partnership: 1. a A [rollup](https://asc.understandingaccounting.org/glossary/r/#rollup "A way to create a master limited partnership in which two or more legally separate limited partnerships are combined into one master limited partnership.") in which the general partner of the new master limited partnership was also the general partner in some or all of the predecessor limited partnerships and no cash is involved in the transaction. Transaction costs in a rollup shall be charged to expense. 2. b A [dropdown](https://asc.understandingaccounting.org/glossary/d/#dropdown "A transfer of certain net assets from a sponsor or general partner to a master limited partnership in exchange for consideration.") in which the sponsor receives 1 percent of the units in the master limited partnership as the general partner and 24 percent of the units as a limited partner, the remaining 75 percent of the units are sold to the public, and a two-thirds vote of the limited partners is required to replace the general partner. 3. c A [rollout](https://asc.understandingaccounting.org/glossary/r/#rollout "A way to create a master limited partnership in which certain assets of a sponsor are placed into a limited partnership and units are distributed to the shareholders."). 4. d A [reorganization](https://asc.understandingaccounting.org/glossary/r/#reorganization "A way to create a master limited partnership in which all of the assets of an entity are placed into a master limited partnership and that entity ceases to exist."). ##### [805-50-30-8](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:f560448a222f22238296269c2fdaf4683df9d49888269e15e53de7443748dc17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In other situations, it is possible that a new basis of accounting would be appropriate. ##### [805-50-30-9](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:f4d22cf4cbf16c4e2130069f728a7049e5b7e734481976153cee9abd8f768eca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The issuance of master limited partnership units to a general partner of a predecessor limited partnership who will not be the general partner of the new master limited partnership in settlement of management contracts or for other services that will not carry over to the new master limited partnership has characteristics of compensation rather than of equity and shall be accounted for accordingly by the new master limited partnership. ### Pushdown Accounting ##### [805-50-30-10](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:37a2fd8b570874b54fe28fa887749a952b8559a57229b2634913ebb6778f5f01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an [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.") elects the option in this Subtopic to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements."), the acquiree shall reflect in its separate financial statements the new basis of accounting established by 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.") for the individual assets and liabilities of the acquiree by applying the guidance in other Subtopics of Topic 805. If the acquirer did not establish a new basis of accounting for the individual assets and liabilities of the acquiree because it was not required to apply Topic 805 (for example, if the acquirer was an individual or an investment company—see Topic 946 on investment companies), the acquiree shall reflect in its separate financial statements the new basis of accounting that would have been established by the acquirer had the acquirer applied the guidance in other Subtopics of Topic 805. ##### [805-50-30-11](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:f30681b20cf3dcb751b6733f2a8c408e9bbf944db50cda04e70eafc4dc6f26d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An acquiree shall recognize goodwill that arises because of the application of pushdown accounting in its separate financial statements. However, bargain purchase gains recognized by the acquirer, if any, shall not be recognized in the acquiree's income statement. The acquiree shall recognize the bargain purchase gains recognized by the acquirer as an adjustment to additional paid-in capital (or net assets of a not-for-profit acquiree). ##### [805-50-30-12](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:07.314Z to 2026-09-10T01:25:07.314Z Record version: sha256:2972e54ec9cdaf51395b1c079c6d87ee04d09c83b7d2d196475d3875fdc9d658 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [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.") shall recognize in its separate financial statements any acquisition-related liability incurred by 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.") only if the liability represents an obligation of the acquiree in accordance with other applicable Topics. Source downloaded (UTC): 2026-09-10T01:25:10.742Z to 2026-09-10T01:25:10.742Z Record version: sha256:e5a57b40417906062548c2a1d6d151e774cece117a8707c190491bb032c130e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/805/50/#35-subsequent-measurement) SEC content: no ### Acquisition of Assets Rather than a Business #### Accounting After Acquisition ##### [805-50-35-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:10.742Z to 2026-09-10T01:25:10.742Z Record version: sha256:077810f191a84c37d37a1031e88f5f16558accab876b34176ebbe3b09bf32cdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. After the acquisition, the acquiring entity accounts for the asset or liability in accordance with the appropriate generally accepted accounting principles (GAAP). The basis for measuring the asset acquired or liability assumed has no effect on the subsequent accounting for the asset or liability. ### Pushdown Accounting ##### [805-50-35-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:10.742Z to 2026-09-10T01:25:10.742Z Record version: sha256:a5e0300b1a8eb3200ca555e2e700db4c556063956ccf307f3651c97abe08d8d7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [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.") shall follow the subsequent measurement guidance in other Subtopics of Topic 805 and other applicable Topics to subsequently measure and account for its assets, liabilities, and equity instruments, as applicable. Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:f33435f1b2625317f0ac007652c9c25270948210ccb40ed736f9384dbc82d094 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/805/50/#45-other-presentation-matters) SEC content: no ### Transactions between Entities under Common Control ##### [805-50-45-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:a9a0882539327fb2c7a75058653071477534801a3b52722d0548bce364e8da04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [805-50-25-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-25-2) establishes that the assets and liabilities transferred between entities under common control are to be initially recognized by the receiving entity at the transfer date. This Subsection provides guidance on the presentation of financial statements for the period of transfer and comparative financial statements for prior years. #### Financial Statement Presentation in Period of Transfer ##### [805-50-45-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:ad7928679388d031eff3daee2e35709178755ea9505b6b8adae7d44cc1fa7d88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statements of the receiving entity shall report results of operations for the period in which the transfer occurs as though the transfer of net assets or exchange of [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") had occurred at the beginning of the period. Results of operations for that period will thus comprise those of the previously separate entities combined from the beginning of the period to the date the transfer is completed and those of the combined operations from that date to the end of the period. By eliminating the effects of intra-entity transactions in determining the results of operations for the period before the combination, those results will be on substantially the same basis as the results of operations for the period after the date of combination. The effects of intra-entity transactions on current assets, current liabilities, revenue, and cost of sales for periods presented and on retained earnings at the beginning of the periods presented shall be eliminated to the extent possible. ##### [805-50-45-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:c1e981d5d67bd70cf4b2eba9ee769825d3e578168ca146db22bd23d2d01dd612 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities need not be eliminated. However, paragraph [805-50-50-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-2) requires disclosure. ##### [805-50-45-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:439c6ee42c4a10c37c36538c164665cf755bb05d19c616ff133d548794058aba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, the receiving entity shall present the statement of financial position and other financial information as of the beginning of the period as though the assets and liabilities had been transferred at that date. #### Comparative Financial Statement Presentation for Prior Years ##### [805-50-45-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:14.613Z to 2026-09-10T01:25:14.613Z Record version: sha256:546f1c57d647b32a7a484b9925fb937160743f49a204f65a815bfcc510a793a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial statements and financial information presented for prior years also shall be retrospectively adjusted to furnish comparative information. All adjusted financial statements and financial summaries shall indicate clearly that financial data of previously separate entities are combined. However, the comparative information in prior years shall only be adjusted for periods during which the entities were under common control. Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:2434c013405d685f50ed7d50f8ecc401157dd0849e91c2549101f6dd8888e870 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/50/#50-disclosure) SEC content: no ### Transactions between Entities under Common Control ##### [805-50-50-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:44fb7d21feedb0ec78f1674e912cbfde15014f6b8d62e355ab1b97a1c1ed159c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [805-50-45-1 through 45-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-1) provide guidance on financial statement presentation in the period of transfer and for periods before the transfer of assets and liabilities between entities under common control. This Subsection addresses incremental disclosures related to such a transaction. ##### [805-50-50-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:ea25fc50b8465ce3edf828fe9dda57ce6a3547a8a088f7e49bd4cf9b7cc0f237 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of and effects on earnings per share (EPS) of nonrecurring intra-entity transactions involving long-term assets and liabilities is not required to be eliminated under the guidance in paragraph [805-50-45-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-45-3) but shall be disclosed. ##### [805-50-50-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:a6387f040ac200a8b73a569441dbf093607801c35755eb8aa5477b6bdcfa149c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The notes to financial statements of the receiving entity shall disclose the following for the period in which the transfer of assets and liabilities or exchange of [equity interests](https://asc.understandingaccounting.org/glossary/e/#equity-interests "Used broadly to mean ownership interests of investor-owned entities; owner, member, or participant interests of mutual entities; and owner or member interests in the net assets of not-for-profit entities.") occurred: 1. a The name and brief description of the entity included in the reporting entity as a result of the net asset transfer or exchange of equity interests 2. b The method of accounting for the transfer of net assets or exchange of equity interests. ##### [805-50-50-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:edb1ed064baef77db1edfb6411bf71acdf7cfbbf90f41d75b75c455319505b87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The receiving entity also shall consider whether additional disclosures are required in accordance with Section 850-10-50, which provides guidance on related party transactions and certain common control relationships. ### Pushdown Accounting ##### [805-50-50-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:10161a9647657f63f178c3a690a7b6dca249c39b1c5bd0382b8f4ebb87b5a0ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an [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.") elects the option to apply [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") in its separate financial statements, it shall disclose information in the period in which the pushdown accounting was applied (or in the current reporting period if the acquiree recognizes adjustments that relate to pushdown accounting) that enables users of financial statements to evaluate the effect of pushdown accounting. To meet this disclosure objective, the acquiree shall consider the disclosure requirements in other Subtopics of Topic 805. ##### [805-50-50-6](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:17.775Z to 2026-09-10T01:25:17.775Z Record version: sha256:98d99e9b0cf377d4442bae00bea4f69b069447d3bba3440dee50908d723df03a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information to evaluate the effect of [pushdown accounting](https://asc.understandingaccounting.org/glossary/p/#pushdown-accounting "Use of the acquirer's basis in the preparation of the acquiree's separate financial statements.") may include the following: 1. a The name and a description of 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.") and a description of how the acquirer obtained [control](https://asc.understandingaccounting.org/glossary/c/#control "The same as the meaning of controlling financial interest in paragraph 810-10-15-8.") of the acquiree. 2. b The [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree."). 3. c The acquisition-date fair value of the total consideration transferred by the acquirer. 4. d The amounts recognized by the acquiree as of the acquisition date for each major class of assets and liabilities as a result of applying pushdown accounting. If the initial accounting for pushdown accounting is incomplete for any amounts recognized by the acquiree, the reasons why the initial accounting is incomplete. 5. e A qualitative description of the factors that make up the goodwill recognized, such as expected synergies from combining operations of the acquiree and the acquirer, or intangible assets that do not qualify for separate recognition, or other factors. In a bargain purchase (see paragraphs [805-30-25-2 through 25-4](https://asc.understandingaccounting.org/asc/805/30/#805-30-25-2) ), the amount of the bargain purchase recognized in additional paid-in capital (or net assets of a not-for-profit acquiree) and a description of the reasons why the transaction resulted in a gain. 6. f Information to evaluate the financial effects of adjustments recognized in the current reporting period that relate to pushdown accounting that occurred in the current or previous reporting periods (including those adjustments made as a result of the initial accounting for pushdown accounting being incomplete \[see paragraphs [805-10-25-13 through 25-14](https://asc.understandingaccounting.org/asc/805/10/#805-10-25-13) \]). The information in this paragraph is not an exhaustive list of disclosure requirements. The acquiree shall disclose whatever additional information is necessary to meet the disclosure objective set out in paragraph [805-50-50-5](https://asc.understandingaccounting.org/asc/805/50/#805-50-50-5). Source downloaded (UTC): 2026-09-10T01:25:20.275Z to 2026-09-10T01:25:20.275Z Record version: sha256:dac9b6d57fda7dca3daf8d2237749196cdd05f8045fa3d96c9a559ffe5cb1656 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/805/50/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [805-50-55-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:20.275Z to 2026-09-10T01:25:20.275Z Record version: sha256:0862c32d2a3b3ba7c09989e2441d35a41459a25d2651f859a67e261ac5118e18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the application of the relative fair value method when assets are acquired in a group outside a business combination as discussed in paragraph [805-50-30-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-30-3). - On January 1, 20X9, Entity A purchased land, building, and equipment for $500,000 in cash. Transaction costs of $25,000 were incurred. - To allocate the cost, the fair value of the individual assets is determined based on the guidance in Topic 820. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-B895154A-6A30-4326-A060-4EA6102C3427-low.gif) Asset Fair Value (Based on Measurement Guidance in Topic 820) Percent of Total Fair Value × Purchase Price + Transaction Costs = Allocated Cost of Assets Acquired + Transaction Costs Land " $350,000 " 61% (a) " $525,000 " " $319,565 " Building " 175,000 " 30% (b) " 525,000 " " 159,783 " Equipment " 50,000 " 9% (c) " 525,000 " " 45,652 " Total " $575,000 " 100% " $525,000 " (a) "$350,000/$575,000 = 61%" (b) "$175,000/$575,000 = 30%" (c) "$50,000/$575,000 = 9%" Source downloaded (UTC): 2026-09-10T01:25:22.231Z to 2026-09-10T01:25:22.231Z Record version: sha256:9d3350c544cdb6ea3b03cfc6031ab44d40a0bccc279cbcaae87535b8104654b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/805/50/#65-transition-and-open-effective-date-information) SEC content: no ##### [805-50-65-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:22.231Z to 2026-09-10T01:25:22.231Z Record version: sha256:0fb095f4b824a38130d43c36e4fa6863e2b808ba47295d8275893f50e3df2b30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/26/2015 after the end of the transition period stated in Accounting Standards Update No. 2014-17, _Business Combinations (Topic 805): Pushdown Accounting_. Source downloaded (UTC): 2026-09-10T01:25:27.638Z to 2026-09-10T01:25:27.638Z Record version: sha256:4ac3aacc5da73a4f905f48bce6a0a94ef622b83c99d8a09a34d9c66c02a0deda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-00-status) SEC content: yes ##### [805-50-S00-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:27.638Z to 2026-09-10T01:25:27.638Z Record version: sha256:d3ac8b21e247fa55dbae3d77a5efb2d4e05399ef32c089f09f6c8542e16a8b3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
805-50-S25-1SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S30-1SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S30-2SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S50-1SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S55-1SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S99-1 through S99-3
SupersededAccounting Standards Update No. 2015-0805/08/2015
805-50-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
805-50-S99-1AmendedAccounting Standards Update No. 2010-2208/19/2010
805-50-S99-2AmendedAccounting Standards Update No. 2010-0401/15/2010
Source downloaded (UTC): 2026-09-10T01:25:29.321Z to 2026-09-10T01:25:29.321Z Record version: sha256:1941b3c7e64051a85eedf2a345c635a3724bbd772567e3780ce10b2f2dc770b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-25-recognition) SEC content: yes ### New Basis of Accounting (Pushdown) ##### [805-50-S25-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:29.321Z to 2026-09-10T01:25:29.321Z Record version: sha256:c334c76810305be0d11242bad28218d5adca850b4cd92b5f9afbcebdf79057e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). Source downloaded (UTC): 2026-09-10T01:25:32.538Z to 2026-09-10T01:25:32.538Z Record version: sha256:3df072b74d712c650af631323840a5e01354363aa6702c98fef4200b59829451 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S30: SEC 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-30-initial-measurement) SEC content: yes ### Transactions between Entities under Common Control ##### [805-50-S30-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:32.538Z to 2026-09-10T01:25:32.538Z Record version: sha256:ca3d73341e83b53c0ea0ed2aa8070452ed3895e185b5d002f5df0fede04fdc18 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). ##### [805-50-S30-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-S30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:32.538Z to 2026-09-10T01:25:32.538Z Record version: sha256:b84deb1a0c95f86e1bc43bdbd2c4af73a82bbc1ff08289eb1c30628dd02af9f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). #### Measurement of Certain Transfers Between Entities Under Common Control in the Separate Financial Statements of Each Entity ##### [805-50-S30-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-S30-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:32.538Z to 2026-09-10T01:25:32.538Z Record version: sha256:519f2ba5a4440245fb8e0f74d92c628deeed0e13032a7b1d5ccac938c7b91470 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [805-50-S99-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-S99-4), SEC Observer Comment: Measurement of Certain Transfers Between Entities Under Common Control in the Separate Financial Statements of Each Entity for SEC Staff views on carrying over historical cost to record, in the separate financial statements of each entity, certain transfers between companies under common control or between a parent and its subsidiary. Source downloaded (UTC): 2026-09-10T01:25:36.085Z to 2026-09-10T01:25:36.085Z Record version: sha256:407b8bad80bb18c966f021a65c19cc7c3772b7e05c2e5c0acba3b0a29ea5c28b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-50-disclosure) SEC content: yes ##### [805-50-S50-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:36.085Z to 2026-09-10T01:25:36.085Z Record version: sha256:3aa2fcd4fb933d879a921866606ac141ab412b5cf7fe91035eea934037376360 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). Source downloaded (UTC): 2026-09-10T01:25:38.552Z to 2026-09-10T01:25:38.552Z Record version: sha256:de6a86612f2058c2839d92bc88d500cf04ff49c82935ec43751ec5297b5f63a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S55: SEC 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-55-implementation-guidance-and-illustrations) SEC content: yes ##### [805-50-S55-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:38.552Z to 2026-09-10T01:25:38.552Z Record version: sha256:38203593e8fe849f7a8f5d365166d8508fe7ef3ca0da6ab6c9ed3e39e86a5ceb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). Source downloaded (UTC): 2026-09-10T01:25:42.308Z to 2026-09-10T01:25:42.308Z Record version: sha256:300f5b86d66dba329d24310be26eb38fc44c05fb0abec662ef9d30437167f997 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-50-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/805/50/#sec-99-sec-materials) SEC content: yes ### Transactions between Entities under Common Control #### SEC Staff Guidance ##### [805-50-S99-1](https://asc.understandingaccounting.org/asc/805/50/#805-50-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:42.308Z to 2026-09-10T01:25:42.308Z Record version: sha256:0647f70938d868e02382cbc3ddb16d5361487c6e885d878528042a86514d4770 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). ##### [805-50-S99-2](https://asc.understandingaccounting.org/asc/805/50/#805-50-S99-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:42.308Z to 2026-09-10T01:25:42.308Z Record version: sha256:519b255100cb05295c93fbf59658240be2b79b0f6edccc4e20eb10b43925a99e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). ##### [805-50-S99-3](https://asc.understandingaccounting.org/asc/805/50/#805-50-S99-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:42.308Z to 2026-09-10T01:25:42.308Z Record version: sha256:4ae13890f879df0f10f51d34b11aa3e088a8b819eba44336180137494022cb27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-08](https://asc.understandingaccounting.org/updates/asu-2015-08/). ##### [805-50-S99-4](https://asc.understandingaccounting.org/asc/805/50/#805-50-S99-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:25:42.308Z to 2026-09-10T01:25:42.308Z Record version: sha256:2309d620ff396104df107eae047cfa8b122b3429c0f6192b797e9d97de23d433 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of the SEC Observer Comment: Measurement of Certain Transfers Between Entities Under Common Control in the Separate Financial Statements of Each Entity. - The SEC staff's views on carrying over historical cost to record, in the separate financial statements of each entity, transfers between companies under common control or between a parent and its subsidiary are focused on transfers of net assets (as in a business combination) or long-lived assets. Those views would not normally apply to recurring transactions for which valuation is not in question (such as routine transfers of inventory) in the separate financial statements of each entity that is a party to the transaction.