Читать книгу Annual Accounting and Auditing Workshop - Kurt Oestriecher - Страница 22

There was diversity in practice in determining when the purchase or sale of a group of assets constituted a business because the definition of a business in FASB ASC 805, Business Combinations, was too broad. This led to differences in accounting for purchase or sales transactions and the subsequent accounting for those transactions. This update is meant to provide a framework to assist entities in evaluating whether they have acquired or sold a business.