ASC 805 Business Combinations
ASC 805 Business Combinations
Upload the purchase agreement, the valuation report and the target's trial balance. Aprilis works through the acquisition and produces a review-ready workpaper: consideration, fair values, deferred taxes, goodwill and the day-one entry.
Every figure in the delivered workbook is a live Excel formula, not a pasted number.
From the signed agreement through to the workbook your reviewer and your auditor open.
Price, closing cash and working-capital adjustments, escrow, earnout at fair value - and what is not consideration: debt repaid at closing, retention awards, settlements of pre-existing relationships.
Each line at acquisition-date fair value, tied back to the target's balance sheet, with the step-ups identified.
Customer relationships, developed technology, trade names, backlog and covenants - each with its valuation method, life and annual amortization.
Temporary differences at the rate the documents state, measured against stated tax bases. A figure the documents cannot support is flagged, never quietly used.
The residual, computed from the workpaper's own figures - and if it comes out negative, the reassessment ASC 805-30-25-4 requires before any gain is recognized.
A previously held interest remeasured to fair value with the gain or loss, and any noncontrolling interest carried into goodwill.
Provisional amounts tracked and revised to final, with the effect on goodwill shown. Later changes in the earnout's fair value go to earnings, not goodwill.
A balanced acquisition entry with every line a cross-tab formula, the debt payoff as its own settlement entry, transaction costs expensed, and the memo and disclosure support beside it.
Every figure names the document and section it came from, or how it was derived, on the face of the workpaper.
Aprilis performs the analysis. You stay in control.
You see the assumptions, the calculations, the source documents and the accounting guidance behind every conclusion. If you disagree with a judgement, you can find it, change it, and watch the goodwill move.
Consideration, net assets, deferred taxes and goodwill are linked cells. Change an input and the entry recomputes.
Each figure names the agreement, the valuation report or the trial balance it came from. Anything the documents do not support is flagged, never assumed.
The tax rate, the treatment of the debt payoff, provisional amounts - each appears as a visible input with its basis beside it.
The entry must balance and the net assets must tie to the target's balance sheet. The workpaper says so, on the page.
Particularly teams closing acquisitions without a dedicated purchase-accounting specialist in house, where the opening balance sheet, the deferred taxes and the audit support all have to be right the first time.
See what Aprilis produces from the deal documents.