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Chapter 4 — Recognizing and Measuring the Identifiable Assets Acquired and Liabilities Assumed

4.12 Debt

4.12 Debt

An acquirer in a business combination is required to recognize any debt of the acquiree that it assumes at fair value on the acquisition date. The acquiree’s debt issuance costs do not meet the definition of an asset. Therefore, the acquiree’s unamortized debt issuance costs are not recognized in a business combination.