Accounting procedures for a business combination

1. identify the acquirer 2. determine the acquisition date 3. calculate the fair value of the purchase consideration transferred 4. recognize and measure the identifiable assets and liabilities of the business. if the acquirer gains control by purchasing less than 100% of the acquired entity, the 4th step includes measuring and recognizing the non controlling interest. this applies in the stock acquisition 5. recognize and measure either goodwill or gain from a bargain purchase