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Every Tuesday in July, Jay Seliber is taking over the podcast to share insights on business combinations, which are often significant events in a company’s life cycle. Jay takes us on a journey through a deal, beginning with the complexities of the overall acquisition accounting model, then diving into some of the more complex areas— identifying the accounting acquirer, accounting for contingent consideration, and reporting with the SEC. 

To kick off the series, Jay shares insights on the foundations of acquisition accounting, including key areas of judgment in the model.

In this episode, you’ll hear discussion of:

• 1:58 - The importance of understanding acquisition accounting, even in times of low deal volume
• 3:50 - The foundational accounting considerations for business combinations, including the determination of which transactions qualify as business combinations, and the implications on the control assessment
• 8:04 - The acquisition method, including how to account for the various forms of consideration exchanged in a transaction
• 12:40 - The complexities involved in step acquisitions and partial acquisitions as well as their impact on the application of acquisition accounting
• 17:46 - Insights on the measurement of assets and liabilities acquired in a business combination
• 21:24 - The measurement and allocation of goodwill acquired in a business combination, including tips for bookkeeping of goodwill
• 29:43 - Reminders related to measurement period and conforming accounting policies
• 38:17 - Final advice for getting prepared and dealing with a live deal

For more information, read our Business combinations guide and listen to our prior podcast on disclosures required in business combinations. Additionally, refer to our In the loop on the impact of acquiring an asset vs. a business.

Jay Seliber is a partner in PwC’s National office. He leverages over 30 years of experience to help clients with their most complex accounting matters, particularly in the areas of mergers and acquisitions, revenue recognition, stock compensation, earnings per share, employee benefits, restructurings, impairments, and financing transactions. Jay is presently PwC's representative on the FASB's Emerging Issues Task Force.

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].