FASB ASC 805 Business Combinations: Inventory Fair Value Adjustments

Business combination accounting under FASB Accounting Standards Codification (FASB ASC) 805, Business Combinations, is complex and not an area that many practitioners and their private company clients frequently encounter. These transactions are frequently very time-consuming in areas beyond accounting such as legal, operations, and human resources. As a result of these factors, we sometimes note that accounting adjustments related to business combinations in private companies do not receive sufficient attention and are inappropriately oversimplified. One such area is inventory. Frequently,