Under the guidance of ASC Topic 805, companies must measure fair values of the following at their acquisition-date:
- Identifiable assets acquired
- Liabilities assumed
- Any non-controlling interest in the acquiree
In addition, under US GAAP and tax regulations, acquired assets and assumed liabilities are not limited to those previously recognized by the acquiree. Certain assets and liabilities that were not previously recognized by an acquiree must be recognized by an acquirer as of the transaction closing. These typically include any intangible assets that were internally developed (not previously purchased) by the acquiree.
Assets and Liabilities
Business combinations involve all classes of tangible assets, intangible assets, and liabilities, including but not limited to the following:
Real Property
Land
Improvements
Buildings
Leasehold Interest
Personal Property and Related Assets
Machinery and Equipment
Furniture and Fixtures
Computer Equipment
Vehicles
Construction in Progress
Leasehold Improvements
Intangible Assets
Trademarks
Technology (Patented and Unpatented)
Internally Developed Software
Customer Relationships
Favorable Supply Agreements
Non-Compete Agreements
Licensing Agreements
Liabilities
Deferred Revenue
Contingent Considerations
Contingent Liabilities