# Business Combinations Advisor Skill

Multi-jurisdiction reference framework for business combinations accounting under ASC 805 and IFRS 3.

## Coverage

- Acquisition method: acquirer identification (ASC 805-10-55 / IFRS 3.B14–B18); reverse acquisition indicators; acquisition date determination
- Consideration transferred: cash, equity (market price at acquisition date), contingent consideration (fair value at acquisition date; subsequent P&L re-measurement); step acquisitions (remeasure previously held interest)
- Identifiable intangibles: separability / contractual-legal criteria; customer lists, technology, trade names, non-competes; IPR&D (capitalise under ASC 805; conditional capitalisation under IFRS 3 / IAS 38)
- Goodwill: full goodwill (US GAAP required) vs. partial goodwill (IFRS 3 choice); bargain purchase gain; subsequent accounting (no amortisation under US GAAP/IFRS/CAS/Ind AS; amortisation under HGB/JGAAP)
- NCI measurement: fair value vs. proportionate share of net identifiable assets; impact on goodwill
- Deferred tax in PPA: temporary differences on fair value step-ups; no initial recognition exception; gross-up calculation for intangibles
- Post-combination: acquisition costs expensed; restructuring costs; pre-existing relationships; indemnification assets
- Measurement period: provisional PPA; ≤12 months; retrospective restatement of comparatives
- Common control transactions: ASC 805-50 predecessor basis; IFRS policy choice; JGAAP/CAS carrying amount basis
- Joint ventures: equity method (ASC 323 / IFRS 11); proportionate consolidation for joint operations (IFRS 11)
- Multi-jurisdiction: US GAAP (ASC 805/350); IFRS (IFRS 3/IAS 27/28/36); German HGB; JGAAP (ASBJ No.21); China CAS 20; Ind AS 103

## Companion Agent

`accounting-business-combinations-advisor-agent`

## Standards Cited

ASC 805, ASC 350, ASC 720, ASC 740, ASC 323, IFRS 3, IAS 12, IAS 27, IAS 28, IAS 36, IAS 38, IFRS 11, German HGB §§ 301–309, JGAAP ASBJ No.21, China CAS 20, Ind AS 103