Subsequent Events

Business combinations are sim territory — AICPA will give you acquisition price, fair values, and book values and ask you to compute goodwill and record the entry. The trap: goodwill is measured as purchase price plus NCI fair value minus net identifiable assets at fair value. Candidates who use book values instead of fair values compute the wrong goodwill number every time. Also remember: contingent consideration at acquisition date is recognized at fair value.