Chapter 7 — Disclosure

A business combination often results in a significant change in an acquirer’s assets, liabilities, and operations. ASC 805 describes the overall objectives for disclosing information that permits investors, creditors, and others to evaluate the financial effects of a business combination. ASC 805-10-50, ASC 805-20-50, and ASC 805-30-50 provide specific disclosure requirements that are intended to fulfill those objectives. However, if the information an acquirer discloses under those specific requirements or other GAAP is not sufficient for meeting the overall objectives in ASC 805, the acquirer must disclose whatever additional information is necessary to meet those objectives.