Asset acquisition accounting

Mar 26, 2024

PwC's accounting experts Matt Sabatini and Alexander Martin discuss asset acquisition accounting, distinguishing it from business combinations. They cover topics like identifying assets, contingent consideration arrangements, transaction costs impact, noncontrolling interests, and cost allocation. The discussion provides insights into the complexities of asset acquisitions and the unique accounting framework involved.

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Introduction

00:00 • 2min

Navigating Asset Acquisitions in Accounting

01:38 • 8min

Exploring the Concept of 'Substantially All' in Asset Acquisition Accounting

09:57 • 2min

Analyzing Judgment Perspective and Grouping of Assets in Acquisition Accounting

12:11 • 2min

Asset Acquisition Accounting Process and Criteria

14:15 • 11min

Asset Acquisition Accounting: Cost Accumulation and Allocation

25:03 • 31min

Differences in Accounting Treatment for Business Combinations and Asset Acquisitions

55:35 • 2min

Navigating Complexities in Asset Acquisitions and Business Combinations

57:43 • 2min

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We wrap up our miniseries exploring accounting for property, plant, and equipment with a discussion of asset acquisitions. In this episode Host Heather Horn is joined by PwC National Office partners Matt Sabatini and Alexander Martin who team up to share their knowledge and insights on this topic.

In this episode, you’ll hear:

04:41 – A discussion of how to determine whether a transaction is an asset acquisition or a business combination
24:26 – An explanation of the asset acquisition accounting framework
- 32:58 – The complexities of contingent consideration arrangements
- 39:32 – How transaction costs impact initial measurement
- 42:09 – Noncontrolling interests
- 47:36 – Considerations when identifying the assets acquired
- 50:15 – How to allocate cost to assets acquired

For more information, read chapter 2 of our Property, plant, equipment and other assets guide. Additionally, follow this podcast on your favorite podcast app for more episodes.

Matt Sabatini is a partner in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, corporate reorganizations, recapitalizations, joint ventures, and other investments.

Alexander Martin is a partner in PwC's National Office with over a decade of deals experience, helping clients solve complex accounting, financial reporting, and other business issues that arise from transaction-driven events such as mergers and acquisitions, divestitures, and capital raises.

Heather Horn is the PwC National Office Sustainability & Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.