7.12 Disclosures Related to Business Combinations After the Balance Sheet Date
ASC 805-10
50-4 If the acquisition date of a business combination is after the reporting date but before the financial
statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall
disclose the information required by paragraph 805-10-50-2 unless the initial accounting for the business
combination is incomplete at the time the financial statements are issued or are available to be issued. In that
situation, the acquirer shall describe which disclosures could not be made and the reason why they could not
be made.
ASC 805-20
50-3 If the acquisition date of a business combination is after the reporting date but before the financial
statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall
disclose the information required by paragraph 805-20-50-1 unless the initial accounting for the business
combination is incomplete at the time the financial statements are issued or are available to be issued. In that
situation, the acquirer shall describe which disclosures could not be made and the reason why they could not
be made.
ASC 805-30
50-3 If the acquisition date of a business combination is after the reporting date but before the financial
statements are issued or are available to be issued (as discussed in Section 855-10-25), the acquirer shall
disclose the information required by paragraph 805-30-50-1 unless the initial accounting for the business
combination is incomplete at the time the financial statements are issued or are available to be issued. In that
situation, the acquirer shall describe which disclosures could not be made and the reason why they could not
be made.
As indicated in ASC 805-10-50-4, entities are required to disclose the information included in
ASC 805-10-50-2, ASC 805-20-50-1, and ASC 805-30-50-1 “[i]f the acquisition date of a business
combination is after the reporting date but before the financial statements are issued or are available
to be issued.” If the initial accounting for the business combination is incomplete when the financial
statements are issued or are available to be issued, the acquirer should “describe which disclosures
could not be made and the reason why they could not be made,” in accordance with ASC 805-20-50-3.
In addition, as stated in ASC 805-20-50-4A, if an acquirer has recognized only provisional amounts for
“particular assets, liabilities, noncontrolling interests, or items of consideration,” it should disclose the
following, either “for each material business combination or in the aggregate for individually immaterial
business combinations that are material collectively”:
- “The reasons why the initial accounting is incomplete.”
- “The assets, liabilities, equity interests, or items of consideration for which the initial accounting is incomplete.”
- “The nature and amount of any measurement period adjustments recognized during the reporting period in accordance with paragraph 805-10-25-17.”