Appendix H — Roadmap Updates for 2024

Unit of Account for R&D Assets

Added section and Example 4-7 to address unit of account considerations for R&D assets.

Intangible Assets Subject to Outlicensing Arrangements Associated With R&D Activities

Added section to address outlicensing arrangements associated with R&D activities.

Pushdown Accounting for Subsidiaries contributed to a Joint Venture Upon Formation

Added section to address the applicability of pushdown accounting in the separate financial statements of a subsidiary contributed to a joint venture as part of its formation.

Pushdown Accounting for a Subsidiary of an Entity Adopting Fresh-Start Reporting Upon its Emergence From Bankruptcy

Added section to address the applicability of pushdown accounting in the separate financial statements of a subsidiary of an entity adopting fresh-start reporting.

Updated to add discussion of the SEC’s final rule on financial reporting and disclosures for SPACs.

Step 1 — Combine the Identifiable Assets Into a Single Identifiable Asset

Clarified that an entity should consider ROU lease assets in the performance of the screen test.

Step 3 — Measure the Fair Value of the Gross Assets Acquired

Clarified that an entity should include all forms of consideration transferred when performing the screen test.

Identify the Elements of a Business

Clarified that an acquired set could still be considered as having outputs even if all its goods or services, or both, were previously being used internally through intercompany revenue or transfer arrangements.

Sets With Outputs

Clarified that new contracts originating between the buyer and a third party on the acquisition date should not be considered part of the acquired set in the assessment of the definition of a business.

Identifying the Acquirer if the Acquiree Is a VIE

Added a Changing Lanes discussion of the proposed ASU on identifying the accounting acquirer in “a business combination that is effected primarily by exchanging equity interests in which a VIE is acquired.”

Recognition and Measurement Principles

Updated the Changing Lanes discussion to reflect the FASB’s issuance of ASU 2024-02, which removes references to various Concepts Statements from the Codification.

4.3.11.2

Leases — Before Adoption of ASC 842

Deleted section related to accounting for leases in a business combination before the adoption of ASC 842. Removed Example 4-6 and renumbered Example 4-7 to Example 4-6.

Digital Assets

Updated the Changing Lanes discussion to reflect the FASB’s issuance of ASU 2023-08, which addresses the accounting and disclosure requirements for certain crypto assets.

Public Shell Corporations and SPACs

Added a Changing Lanes discussion of the SEC’s final rule on financial reporting and disclosures for SPACs.

Periods to Be Presented

Updated discussion to clarify which disclosures should be included in an acquirer’s interim financial statements after an acquisition.

Disclosures by the Receiving Entity

Added a Changing Lanes discussion to reflect the FASB’s issuance of ASU 2023-06, which enhances the disclosure requirements in ASC 250 for a change in the reporting entity.

Summary of Significant Differences Between the Accounting for a Business Combination and the Accounting for an Asset Acquisition

Updated table to clarify the treatment of an acquiring entity’s equity instruments in an asset acquisition and to remove references to ASC 840 with respect to lease classification in a business combination.

Contingent Consideration When the Fair Value of the Assets Acquired Exceeds the Initial Consideration Paid

Clarified the considerations related to ASC 815 and ASC 450, and the application of FASB Statement 141 and ASC 323-10 by analogy.

Exceptions to Pro Rata Allocation

Removed previous Example C-8 and added clarifying language related to a bargain purchase in an asset acquisition. Renumbered the previous Example C-9 to Example C-8.