ASC 805, also known as the Accounting Standards Codification Topic 805, addresses the accounting for business combinations. It establishes the acquisition method as the framework for recognizing and measuring identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity at the acquisition date. This standard influences various aspects of financial reporting, particularly in areas like contingent consideration and how assets and liabilities are evaluated during mergers and acquisitions.
congrats on reading the definition of asc 805. now let's actually learn it.