C.4 Disclosures
ASC 805-50 does not prescribe any disclosure requirements for asset acquisitions. However, the
acquiring entity will need to provide disclosures in accordance with other GAAP depending on the assets
acquired or the liabilities assumed or incurred. For example:
- ASC 360-10-50-1 requires disclosure of the balances of major classes of depreciable assets, by nature or function, and accumulated depreciation on the balance sheet date; depreciation expense for the period; and a general description of the method or methods used to compute depreciation with respect to major classes of depreciable assets.
- ASC 350-30-50-1 includes disclosure requirements for intangible assets acquired either individually or as part of a group of assets.
- ASC 450-20-50 requires disclosures regarding loss contingencies.
- ASC 845-10-50-1 includes specific disclosure requirements for nonmonetary transactions.
In addition, depending on the size of the asset acquisition, acquiring entities may decide to provide
some of the disclosures prescribed in ASC 805-10-50, ASC 805-20-50, or ASC 805-30-50 for a business
combination. For example, disclosures about the reason for the acquisition, the amounts recognized
as of the date of acquisition for each major class of assets acquired and liabilities assumed, and
information about any separate transactions may enhance users’ understanding of the transaction.