Purchase Accounting, Fair Value & Earn-Out Challenges Webinar
Overview
Accounting for an acquisition is driven by what was acquired, how fair value is measured, and whether an earn-out represents purchase consideration or post-combination compensation. This technical accounting course examines the US GAAP requirements for business combinations and asset acquisitions, with a focus on applying ASC 805 and ASC 820 to acquisition-related accounting conclusions.
Participants will learn how to determine the appropriate accounting model, translate deal economics into an acquisition-date opening balance sheet, and account for identifiable assets and liabilities, deferred taxes, goodwill, and required disclosures. The course also explains how to evaluate purchase price allocation valuations and address the classification, initial measurement, subsequent remeasurement, financial statement effects, and disclosure of earn-out arrangements. Recent accounting updates, active FASB projects, practical deal examples, and acquisition-accounting control considerations are also incorporated throughout the course.
Upon successful completion of this webinar, participants will have earned 1.5 CPE credit hours from CPE Inc., a NASBA-registered sponsor.
Objective
To provide participants with a practical understanding of how to determine whether a transaction is a business combination or an asset acquisition, apply the acquisition method to prepare the opening balance sheet, evaluate fair value measurements used in the purchase price allocation, account for earn-out arrangements, and incorporate current accounting developments into the acquisition-accounting process.
Emphasis
- Determining scope
– Business combinations vs. asset acquisitions
– Transaction path under US GAAP
– Why classification matters
– Steps for screening and analyzing a business - Purchase accounting mechanics
– Acquisition method
– Deal timeline and measurement period
– What belongs in the PPA?
– Measurement-period governance
– Acquired revenue contracts
– Goodwill and bargain purchases
– Private company alternatives - Fair value and measuring what was acquired
– ASC 820 fair value lens
– Valuation methods for common PPA assets
– Fair value control points - Earn-out challenges
– Contingent consideration in business combinations and asset acquisitions
– Earn-out valuation approaches
– Earn-out disclosures and SEC-review themes
Speakers
Bill Witt, Director, Highspring
Bill Witt is a Director in the Accounting and Transaction Services (A&TS) practice at Highspring, where he specializes in advising clients on complex initial public offering (IPO) transactions, SEC filings, and technical accounting matters. With over 25 years of experience in technical accounting and financial reporting leadership, Bill is a trusted advisor to clients navigating high-stakes financial events.
His technical expertise spans a range of industries including fintech, biotechnology, and SaaS, with a proven track record supporting multiple IPOs and leading engagements involving ASC 606, lease accounting, and other critical accounting standards. Bill has developed and delivered training programs on the IPO process and technical accounting topics, positioning him as both a subject-matter expert and educator.
In addition to IPO readiness, Bill has extensive experience in financial transformation, including the optimization of close processes, the development of robust forecasting models, and the preparation of companies for complex equity and debt transactions. He is skilled in leading cross-functional teams and managing high-complexity projects involving corporate governance, post-merger integration, and strategic financial planning.
Prior to joining Highspring, Bill was a Senior Manager at Ernst & Young LLP, serving clients in both San Jose, California, and Atlanta, Georgia. He is a Certified Public Accountant (CPA) licensed in California, Georgia, and Ohio.
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