ASU 2021-08 — Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

The amendments in this Update address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination. The amendments in this Update require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers.

This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2020-1000—Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which has been deleted.

Issued: October 28, 2021