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FASB Accounting Standards Codification Topic 805, Business Combinations

Authoritative US GAAP source for the acquisition method scope and the recognition and measurement of identifiable assets, liabilities, in process R&D, and residual goodwill in a business…

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Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
Topic 805 as accessed 2026-08-08
Relevant parts
Topic 805; Subtopic 805-30 for goodwill and bargain purchases, with acquisition-method scope and private-company alternatives researched separately
Currency
current · checked Sep 11, 2026

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Topic 805 prevents goodwill from becoming a plug for every unexplained difference. The acquired business, acquisition date, identifiable assets, liabilities, applicable alternatives, and measurement evidence must be controlled before computing a residual amount.