by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Business Combinations
⚡ TL;DRASC 323 governs the equity method for investments in entities over which the investor has significant influence — typically a 20% to 50% holding — without control. The investment starts at cost and is adjusted for the investor’s share of the...
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Business Combinations
⚡ TL;DRNon-controlling interests (NCI) are the portion of a subsidiary’s equity not owned by the parent. Under US GAAP (ASC 810), NCI is presented within consolidated equity, separately from the parent’s equity, and is measured at fair value at...
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Business Combinations
⚡ TL;DRPurchase accounting, or purchase price allocation (PPA), is the process of recording an acquisition under ASC 805. The acquirer measures the consideration, identifies and fair-values the acquired assets and assumed liabilities (including intangibles), and...
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Business Combinations
⚡ TL;DRASC 810 governs consolidation under US GAAP using two models: the voting interest model, where control follows majority voting rights, and the variable interest entity (VIE) model, for entities where control is not conveyed by voting rights. The VIE model —...
by Ekrem Duman | Jun 19, 2026 | Accounting, US GAAP Business Combinations
⚡ TL;DRASC 805 governs business combinations under US GAAP using the acquisition method: identify the acquirer, determine the acquisition date, recognise and measure identifiable assets acquired and liabilities assumed at fair value, and recognise goodwill or a...
