The AICPA’s Financial Reporting Executive Committee (FinREC) issued a working draft of the AICPA Accounting and Valuation Guide, Business Combinations, which provides guidance and illustrations regarding the accounting and valuation considerations for business combination transactions.
The proposed guidance covers several topics, including identifying business combination transactions and whether the acquired set meets the definition of a business or is a collection of assets; identifying the acquirer; measuring the consideration transferred; and recognizing and measuring the identifiable assets acquired and liabilities assumed.
FinREC is seeking comments by Jan. 15, 2023, on the proposed guidance to help preparers, auditors and valuation specialists understand and comply with the requirements of FASB ASC Topic 805, Business Combinations, and FASB ASC Topic 820, Fair Value Measurement. FinREC will accept comments via email.