Business Combination vs. Asset Acquisition : How to define a business

In this video we face off between what is a business combination versus a asset acquisition. This can be a tricky first step after acquiring assets and can determine a lot of downstream accounting and valuation work. In this episode we start with the basics of what defines a business in the accounting literature with ASC 805. These are your inputs, process, and outputs.

We also go over a very useful screener that may cause the purchase of a business to not be deemed a business combination. This screener is the substantially all screener. Lastly, we perform an example with Laine's acquisition to walk through how to record the entries for an asset acquisition.

Subscribe to my channel so you don't miss anything: https://www.youtube.com/channel/UC1Iva-1xSychaikynKjspiQ?sub_confirmation=1

If you can become a patreon: https://www.patreon.com/AccountingAcademy

Attribution:
Background of thumbnail- a href='https://www.freepik.com/vectors/background'Background vector created by starline - www.freepik.com/a