Scope of this reference
Inspect the standard and the scope used in the teaching material. The verification date describes the stored review.
- Authority
- Financial Accounting Standards Board
- Standard
- ASC Topic 805
- Version
- Codification content as verified 2026-08-08
- Where it applies
- United States GAAP
- Entities covered
- Transactions stipulated to be business combinations under US GAAP; private-company alternatives require explicit eligibility and election
- Last source check recorded
- Aug 8, 2026
- Status recorded at review
- current
- Effective from
- Not specified in this record
Inspect the source: FASB Accounting Standards Codification Topic 805, Business Combinations
Check the applicable effective dates and later amendments in the source before applying this reference.
Instructional scope
The bounded model recognizes supplied identifiable assets and liabilities at their supplied acquisition-date amounts, keeps in-process R&D separate, and computes goodwill only as the remaining acquisition-method residual.
Limitations
The verifier does not determine whether the acquired set is a business, identify the accounting acquirer, perform valuation, resolve a bargain purchase, account for taxes or noncontrolling interests, or apply a private- company alternative without supplied eligibility and election facts.