Business Combinations vs. Asset Acquisitions

A look at distinguishing between business combinations and asset acquisitions as well as insights on key accounting differences.
Business combinations and asset acquisitions aren’t a tomayto-tomahto situation. This week, we expand on our previous episode on Business Combinations by sitting down with fellow Embarkers Mack Martinez and Krista Holland to discuss the critical differences between the transaction types, including:
  • Applying the “screen” test and definition of a business
  • Recognizing and measuring asset acquisitions under the cost accumulation model
  • Identifying key areas where accounting differences exist 
  • Highlighting ongoing FASB developments in the space
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