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FASB Accounting Standards Codification : Business Combinations

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FASB Accounting Standards Codification (ASC) 805-20 (Business Combinations – Identifiable Assets and Liabilities, and Any Noncontrolling Interest) is applicable to our company’s transactions regarding the acquisition of ARU since our acquisition meets the definition of a business combination. Per ASC 805-20-05-1, it states this subtopic provides guidance on how the acquirer shall recognize and measure the identifiable assets acquired, liabilities assumed, and noncontrolling interests in the acquiree. Therefore, this subtopic is applicable to our concern on the disclosure of the extinguishment of debt in financial statements. In addition, per ASC 805-15-2 and ASC 805-15-3, the scope and scope exceptions mention the guidance in this topic applies to all entities and all transactions that meet the definition of a business combination. Per ASC 805-20-50-1, it provides guidance on how our company shall disclose the business combination that occurs during the reporting period, as follows:
50-1 Paragraph 805-10-50-1 identifies one of the objectives of disclosures about a business combination. To meet that objective, the acquirer shall disclose all of the following information for each business combination that occurs during the reporting period: …
c. The amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed.

Furthermore, according to ASC 810-10-10-1, it explains the objectives of the consolidated financial statements, as
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