{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/958/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"805","topic_title":"Business Combinations","subtopic":"805-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Merger of Not-for-Profit Entities","heading":null,"paragraphs":[{"citation":"805-958-30-1","para":"30-1","html":"
The new not-for-profit entity (NFP) shall measure the assets and liabilities in its financial statements as of the merger date at the amounts reported in the financial statements of the merging entities as of that date prepared in accordance with GAAP, adjusted as necessary in accordance with paragraphs
958-805-30-2 through 30-3
.
","snippet":"The new not-for-profit entity (NFP) shall measure the assets and liabilities in its financial statements as of the merger date at the amounts reported in the financial statements of the merging entities as of that date p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2f0295f50f9b924ea7e297dd9a7ec22707c7065f2d970f1aa384e4a60704803","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-2","para":"30-2","html":"
The merging entities may have measured assets and liabilities using different methods of accounting in their separate financial statements. The new NFP shall adjust the amounts of those assets and liabilities as necessary to reflect a consistent method of accounting.
","snippet":"The merging entities may have measured assets and liabilities using different methods of accounting in their separate financial statements. The new NFP shall adjust the amounts of those assets and liabilities as necessar…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37672415b865f535866f85da51672c0a070ddc167e592ed923df810b26c817a2","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-3","para":"30-3","html":"
However, because the carryover method does not reflect a fresh-start measurement, a merger is not an event that permits the election of accounting options that are restricted to the entity's initial acquisition or recognition of an item (or the reversal of a previous election). Thus, for example, one merging entity's election to apply the Fair Value Option Subsections of Subtopic 825-10 for a particular financial asset or liability permits neither the new NFP's election of the fair value option for other financial assets or liabilities at the merger date nor the reversal of the previous selection of the fair value option.
","snippet":"However, because the carryover method does not reflect a fresh-start measurement, a merger is not an event that permits the election of accounting options that are restricted to the entity's initial acquisition or recogn…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:657618d3fdd4d91a099684a864861de65c53b5e6b8e3257d1b26fa42f4365357","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-4","para":"30-4","html":"
The new NFP shall eliminate the effects of any intra-entity transactions on its assets, liabilities, and net assets as of the merger date.
","snippet":"The new NFP shall eliminate the effects of any intra-entity transactions on its assets, liabilities, and net assets as of the merger date.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5087eadfa367bb93fb9b107ddf5924c1bca0df268a7d0b388dd9db6c553804a3","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c3631d04979448cb66a29fc2c520718a785ecc330ef999ff498a1e34138b835","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":null,"paragraphs":[{"citation":"805-958-30-5","para":"30-5","html":"
A not-for-profit entity (NFP) that is an acquirer applies the guidance in this Subsection instead of Subtopic 805-30 for the measurement of the following items:
  1. a
    Goodwill acquired, whether recognized as an asset or an immediate charge to the statement of activities
  2. b
    A contribution received in an acquisition
  3. c
    Consideration transferred, including contingent consideration.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
105-10-65-10A not-for-profit entity (NFP) that is an acquirer applies the guidance in this Subsection instead of Subtopics 805-20 and 805-30 for the measurement of the following items:
  1. a
    Goodwill acquired, whether recognized as an asset or an immediate charge to the statement of activities
  2. b
    A contribution received in an acquisition
  3. c
    Consideration transferred, including contingent consideration.
","snippet":"A not-for-profit entity (NFP) that is an acquirer applies the guidance in this Subsection instead of Subtopic 805-30 for the measurement of the following items:\n(a) Goodwill acquired, whether recognized as an asset or an…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2315654a39fbe13f1efcf1bfd916c46e4a6b26554dc9e013f54fb684b0751cb","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8881448bc835695fc13bf1b85dd6dfd5e4b994196b3633ba55d3e48bb9b4195d","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":"Goodwill Acquired, Whether Recognized as an Asset or an Immediate Charge to the Statement of Activities","paragraphs":[{"citation":"805-958-30-6","para":"30-6","html":"
An NFP acquirer shall measure goodwill acquired, including goodwill recognized as an immediate charge to the statement of activities, as of the acquisition date as the excess of (a) over (b):
  1. a
    The aggregate of the following:
    1. 1
      The consideration transferred measured at its acquisition-date fair value (see paragraphs
      958-805-30-10 through 30-13
      )
    2. 2
      The fair value of any noncontrolling interest in the acquiree
    3. 3
      In an acquisition by a not-for-profit entity achieved in stages, the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree.
  2. b
    The net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed measured in accordance with Subtopic 805-20 and this Subtopic.
","snippet":"An NFP acquirer shall measure goodwill acquired, including goodwill recognized as an immediate charge to the statement of activities, as of the acquisition date as the excess of (a) over (b):\n(a) The aggregate of the fol…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58ccf4de33a1b00d50c353f54e884466ed86e3613a17765af6ee5a668e1f2bd5","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-7","para":"30-7","html":"
The result of the equation in the preceding paragraph will be to measure goodwill or the separate charge to the statement of activities as the excess of liabilities assumed over assets acquired if the acquisition by the NFP meets all of the following criteria:
  1. a
    No consideration is transferred.
  2. b
    There is no noncontrolling interest in an acquiree.
  3. c
    The acquisition was not achieved in stages.
","snippet":"The result of the equation in the preceding paragraph will be to measure goodwill or the separate charge to the statement of activities as the excess of liabilities assumed over assets acquired if the acquisition by the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be7bcb29ec60f93d45da98450be450bb131cae0af83a655def2ddf1ca4945e8e","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c9cbf3940f20041990705dd115c82ee44fb855e23e8ac5e3e26543269cb9561","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":"A Contribution Received in an Acquisition","paragraphs":[{"citation":"805-958-30-8","para":"30-8","html":"
An inherent contribution recognized in accordance with paragraph 958-805-25-31 shall be measured as the excess of the amount in paragraph 958-805-30-6(b) over the amount in paragraph 958-805-30-6(a).
","snippet":"An inherent contribution recognized in accordance with paragraph 958-805-25-31 shall be measured as the excess of the amount in paragraph 958-805-30-6(b) over the amount in paragraph 958-805-30-6(a).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c962c408acb89cfd3e5533032db04e03ca329dd7bfb385481c5e913392bf6d81","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-9","para":"30-9","html":"
The inherent contribution received will be measured as the excess of assets acquired over liabilities assumed if the acquisition meets all of the following criteria:
  1. a
    That acquisition is effected without the transfer of consideration.
  2. b
    There is no noncontrolling interest in an acquiree.
  3. c
    The acquisition was not achieved in stages.
Example 6 (see paragraphs
958-805-55-62 through 55-67
) illustrates an inherent contribution.
","snippet":"The inherent contribution received will be measured as the excess of assets acquired over liabilities assumed if the acquisition meets all of the following criteria:\n(a) That acquisition is effected without the transfer …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3a0f16ed103d7b6e4a126752a9261c275708775ab142a16cb75daf302939621","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5edf5800537fff77568ee3389c537dc882c65638d73e4cf4b58361049ff22c1c","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"block":"Acquisition by a Not-for-Profit Entity","heading":"Consideration Transferred, Including Contingent Consideration","paragraphs":[{"citation":"805-958-30-10","para":"30-10","html":"
The consideration transferred in an acquisition by an NFP shall be measured at fair value, which shall be calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer and the liabilities incurred by the acquirer.
","snippet":"The consideration transferred in an acquisition by an NFP shall be measured at fair value, which shall be calculated as the sum of the acquisition-date fair values of the assets transferred by the acquirer and the liabil…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71e2b8e8640e6eed8cb6ea8780ac10c35ef981b70113dc736b8385feb6a42f15","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-11","para":"30-11","html":"
If the consideration transferred includes assets or liabilities of the NFP acquirer that have carrying amounts that differ from their fair values at the acquisition date, as discussed in paragraph 958-805-25-34, the NFP acquirer shall remeasure the transferred assets or liabilities to their fair values as of the acquisition date.
","snippet":"If the consideration transferred includes assets or liabilities of the NFP acquirer that have carrying amounts that differ from their fair values at the acquisition date, as discussed in paragraph 958-805-25-34, the NFP …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c262fc985f07a07c954eb15aef3be04b0053d31408a98b5f48fabbb598889c7f","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-12","para":"30-12","html":"
An NFP acquirer that retains control over the transferred assets as described in paragraphs
958-805-25-33 through 25-34
shall measure those assets and liabilities at their carrying amounts immediately before the acquisition date.
","snippet":"An NFP acquirer that retains control over the transferred assets as described in paragraphs 958-805-25-33 through 25-34 shall measure those assets and liabilities at their carrying amounts immediately before the acquisit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4c8aacbb015bf9223e7a7c4bfbba3358d8525bf4ec2de27998e887ee21d407a","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},{"citation":"805-958-30-13","para":"30-13","html":"
Contingent consideration shall be measured initially at acquisition-date fair value.
","snippet":"Contingent consideration shall be measured initially at acquisition-date fair value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00517dc4d5e2e102b0709887e85e797c03c4429cce1a3e653bd54f4217c45223","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4be3f8ababd3b28e62780aedb680dfeaeb0cc7787eb4e938264d2a31c817e0e1","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ddb5a2d90622496a09d875675304ee2912b8e3b1a1137e65738aedd3f1614fae","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ddb5a2d90622496a09d875675304ee2912b8e3b1a1137e65738aedd3f1614fae","downloaded_from":"2026-09-10T01:27:56.788Z","last_downloaded_at":"2026-09-10T01:27:56.788Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477730","source_sha256":"8ebd93f312ceff2d76997c6db41551864354c154d26167550a0826927d6457e0"}}