ASU 2012-06 — Business Combinations (Topic 805)

Accounting for a business combination requires that at each subsequent reporting date, an acquirer measure an indemnification asset on the same basis as the indemnified liability or asset, subject to any contractual limitations on its amount, and for an indemnification asset that is not subsequently measured at its fair value, management's assessment of the collectibility of the indemnification asset. This Update addresses the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement (indemnification agreement).

This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF-12C—Business Combinations (Topic 805) which has been deleted.

Issued: October 23, 2012