What it is
A business combination is recorded at acquisition-date fair value. The acquirer measures the consideration, identifies each asset acquired and liability assumed, measures them at fair value and records the difference as goodwill, or as a gain when the result is negative. This workbook carries that sequence from inputs to a balanced opening entry.
Deferred taxes are computed from the tax basis you enter, intangibles are tagged by class, and a log tracks changes made during the measurement period with their effect on goodwill. The entry tab checks that debits equal credits, including a previously held interest and a noncontrolling interest.
When to use it
- When closing the books for an acquisition and preparing the opening balance sheet.
- When a valuation specialist delivers fair values and the allocation needs to be rolled into goodwill.
- When provisional amounts change during the first year and goodwill must be updated.
What’s inside
- Consideration tab: cash, equity, contingent consideration, replacement awards, previously held interest and noncontrolling interest
- Allocation tab: 30 rows for assets and liabilities, step-ups, tax basis and temporary differences
- Goodwill or bargain purchase gain with shares of consideration
- Adjustments tab: measurement-period log with period check
- Entry tab: acquirer opening entry with a balance check
Standard cited
This template follows ASC 805. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What goes into consideration transferred?
Cash, the fair value of equity issued, contingent consideration at fair value on the acquisition date and the precombination portion of replacement awards. Acquisition-related costs are expensed as incurred and stay out of consideration.
How is goodwill computed?
Goodwill is consideration transferred, plus the fair value of any previously held interest, plus the fair value of the noncontrolling interest, less the net identifiable assets at fair value. A negative result is a bargain purchase.
What is the measurement period?
The period after the acquisition date, no longer than one year, in which the acquirer adjusts provisional amounts for facts that existed at the acquisition date. The Adjustments tab flags dates beyond one year.
Why does the entry include a previously held interest?
In a step acquisition the previous interest is remeasured to fair value. The difference from its carrying amount is a gain or loss, and the entry derecognizes the carrying amount.
Related templates
- Consolidation and Elimination Workbook (ASC 810)
- Noncontrolling Interest Roll-forward (ASC 810)
- Fair Value Hierarchy Summary Workbook (ASC 820)
- Deferred Tax Rollforward and Valuation Allowance Worksheet
Last updated 11/05/2026. All free templates.