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Amendments to Subtopic 805-20
Publication date: 26 Nov 2019
us FASB ASU 2019-11
14. Amend paragraph 805-20-50-1, with a link to transition paragraph 326-10-65-4, as follows:
Business Combinations—Identifiable Assets and Liabilities, and Any Noncontrolling Interest
Disclosure
> Business Combinations Occurring during a Current Reporting Period or after the Reporting Date but before the Financial Statements Are Issued
805-20-50-1 Paragraph 805-10-50-1 identifies one of the objectives of disclosures about a business combination. To meet that objective, the acquirer shall disclose all of the following information for each business combination that occurs during the reporting period:
a. | For indemnification assets, all of the following: | |
1. | The amount recognized as of the acquisition date | |
2. | A description of the arrangement and the basis for determining the amount of the payment | |
3. | An estimate of the range of outcomes (undiscounted) or, if a range cannot be estimated, that fact and the reasons why a range cannot be estimated. If the maximum amount of the payment is unlimited, the acquirer shall disclose that fact. | |
b. | For acquired receivables not subject to the requirements of Subtopic 310- 30 326-20 relating to purchased financial assets with credit deterioration, all of the following: | |
1. | The fair value of the receivables (unless those receivables arise from sales-type leases or direct financing leases by the lessor for which the acquirer shall disclose the amounts recognized as of the acquisition date) | |
2. | The gross contractual amounts receivable. | |
3. | The best estimate at the acquisition date of the contractual cash flows not expected to be collected. | |
The disclosures shall be provided by major class of receivable, such as loans, net investment in sales-type or direct financing leases in accordance with Subtopic 842-30 on leases—lessor, and any other class of receivables | ||
c. | The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed (see Example 5 [paragraph 805-10-55-37]). | |
d. | For contingencies, the following disclosures shall be included in the note that describes the business combination: | |
1. For assets and liabilities arising from contingencies recognized at the acquisition date:
i. The amounts recognized at the acquisition date and the measurement basis applied (that is, at fair value or at an amount recognized in accordance with Topic 450 and Section 450-20- 25)
ii. The nature of the contingencies.
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An acquirer may aggregate disclosures for assets or liabilities arising from contingencies that are similar in nature. | ||
2. | For contingencies that are not recognized at the acquisition date, the disclosures required by Topic 450 if the criteria for disclosures in that Topic are met. | |
An acquirer may aggregate disclosures for assets and liabilities arising from contingencies that are similar in nature. | ||
e. | For each business combination in which the acquirer holds less than 100 percent of the equity interests in the acquiree at the acquisition date, both of the following: | |
1. | The fair value of the noncontrolling interest in the acquiree at the acquisition date | |
2. | The valuation technique(s) and significant inputs used to measure the fair value of the noncontrolling interest. | |
Copyright #year# by Financial Accounting Foundation, Norwalk, Connecticut.
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