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

4.5 Assets With Uncertain Cash Flows (Valuation Allowances)

4.5 Assets With Uncertain Cash Flows (Valuation Allowances)

ASC 805-20
Assets With Uncertain Cash Flows (Valuation Allowances)
30-4 The acquirer shall not recognize a separate valuation allowance as of the acquisition date for assets acquired in a business combination that are measured at their acquisition-date fair values because the effects of uncertainty about future cash flows are included in the fair value measure, unless the assets acquired are financial assets for which the acquirer shall refer to the guidance in paragraphs 805-20-30-4A through 30-4B.