Chapter 3 — Identifying the Acquirer and Determining the Acquisition Date

If a transaction is determined to be a business combination, it is accounted for by applying the acquisition method. ASC 805-10-05-4 states that the “acquisition method requires all of the following steps”:

1. “Identifying the acquirer” — see Section 3.1.
2. “Determining the acquisition date” — see Section 3.2.
3. “Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree” — see Chapter 4.
4. “Recognizing and measuring goodwill or a gain from a bargain purchase” — see Chapter 5.