Table of Contents

Course Learning Objectives. 4

Course Overview / Description. 4

Chapter 1 - Accounting for Business Combinations - Section 1. 7

Introduction. 7

Definition of a Business. 7

Chapter 1 - Section 1 Review Questions. 10

Chapter 1 - Accounting for Business Combinations - Section 2. 11

The Acquisition Method. 11

Step 1: Identifying the Acquirer. 11

Step 2: Determining the Acquisition Date. 13

Chapter 1 - Section 2 Review Questions. 15

Chapter 1 - Accounting for Business Combinations - Section 3. 16

Step 3: Recognizing and measuring the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree. 16

Chapter 1 - Section 3 Review Questions. 22

Chapter 1 - Accounting for Business Combinations - Section 4. 23

Chapter 1 - Section 4 Review Questions. 34

Chapter 1 - Accounting for Business Combinations - Section 5. 35

Business Combination Achieved in Stages. 35

Step 4: Recognizing and Measuring Goodwill or Gain from a Bargain Purchase. 36

Measurement Period. 42

Subsequent Measurement 44

Chapter 1 - Section 5 Review Questions. 46

Chapter 1 - Accounting for Business Combinations - Section 6. 47

Financial Statement Disclosures. 47

Chapter 1 - Section 6 Review Questions. 55

Chapter 1 - Accounting for Business Combinations - Section 7. 56

Illustrative Examples from SEC Filings. 56

Reverse Acquisitions. 62

Private Company Alternative. 65

Income Tax Considerations. 66

Asset Acquisition vs. Business Combination. 68

Chapter 1 - Section 7 Review Questions. 71

Solutions to Review Questions. 72

Chapter 1 - Section 1 Review Questions Feedback. 72

Chapter 1 - Section 2 Review Questions Feedback. 73

Chapter 1 - Section 3 Review Questions Feedback. 74

Chapter 1 - Section 4 Review Questions Feedback. 75

Chapter 1 - Section 5 Review Questions Feedback. 77

Chapter 1 - Section 6 Review Questions Feedback. 79

Chapter 1 - Section 7 Review Questions Feedback. 81

Glossary of Key Terms. 83

Final Examination. 86

CPASelfstudy.com Course Evaluation. 90