ASC 805 Purchase Accounting Services – XoraH PLLC

ASC 805 Purchase Accounting Services

At XoraH PLLC, we offer Expert ASC 805 purchase accounting services for businesses navigating business combinations. Our Florida CPA firm guides acquirers through PPA, and GAAP compliance nationwide. 

Intro to Services

When a business acquisition closes, the real accounting work begins. ASC 805, Business Combinations, governs how acquirers recognize and measure the assets acquired, liabilities assumed, and goodwill resulting from a transaction. Misapplying this standard creates audit exposure, misstated financial statements, and downstream reporting problems that are costly to unwind.

At XoraH PLLC, we provide ASC 805 purchase accounting services for private companies, corporate acquirers, and private equity-backed businesses throughout Florida and nationwide. Our CPA advisors bring deep technical expertise to every business combination — delivering accurate, defensible accounting that satisfies auditors, lenders, and investors.

What is ASC 805 and Why does it matter?

ASC 805 establishes the acquisition method as the required approach for accounting for business combinations under US GAAP. Under the acquisition method, the acquirer must:

• Identify the acquirer and determine the acquisition date
• Recognize and measure all identifiable assets acquired and liabilities assumed at fair value as of the acquisition date
• Measure and recognize goodwill or a gain from a bargain purchase
• Determine the consideration transferred, including contingent consideration

The standard applies to all transactions in which an entity obtains control of one or more businesses — including mergers, stock purchases, and asset acquisitions that qualify as business combinations. The accounting is complex, judgment-intensive, and subject to significant auditor scrutiny.

Our ASC 805 Purchase accounting services

We support acquirers at every stage of the purchase accounting process, from pre-close planning through final financial statement preparation.

Acquisition Method Application

We apply the acquisition method under ASC 805 to your specific transaction — identifying the acquirer, establishing the acquisition date, and determining the scope of assets and liabilities to be recognized. Our advisors address common judgment areas including step acquisitions, variable interest entities, and transactions with related parties.

Fair value measurement

Purchase accounting requires fair value measurement of substantially all acquired assets and liabilities. We work alongside your valuation team or independently coordinate the fair value analysis covering tangible assets, intangible assets, contingent liabilities, deferred revenue, and debt — ensuring the inputs and conclusions are supportable under ASC 820.

Goodwill calculation and allocation

We calculate the goodwill recognized in the transaction and assist with allocating goodwill to reporting units for purposes of subsequent annual impairment testing under ASC 350.

contingent consideration

Earnouts and other forms of contingent consideration require initial recognition at fair value and subsequent remeasurement through earnings. We advise on classification, initial measurement, and the ongoing accounting for contingent consideration arrangements under ASC 805.

Financial statement disclosures

ASC 805 requires extensive disclosures in the period of acquisition and in comparative periods. We draft the required footnote disclosures, including the description of the transaction, consideration transferred, amounts recognized for each class of assets and liabilities, and goodwill recognized.

Who we work with

Our ASC 805 purchase accounting services are designed for:

• Corporate acquirers completing strategic acquisitions of all sizes
• Private equity firms and their portfolio companies navigating platform and add-on acquisitions
• Middle market and lower middle market businesses entering their first or second acquisition
• Companies whose internal accounting team lacks the technical capacity to manage purchase accounting in-house
• Businesses preparing for audit where purchase accounting documentation is incomplete or requires remediation

Why work with a specialized accounting advisory firm?

Purchase accounting is not a standard accounting function — it requires specialized knowledge of ASC 805, ASC 820, and the interaction between purchase accounting and other GAAP standards. Most internal accounting teams and general practice CPA firms encounter business combinations infrequently. Our team works on these engagements regularly, which means we bring pattern recognition, efficiency, and technical confidence that translates into better outcomes for your business.

We work alongside your existing audit firm, legal counsel, and valuation advisors in a coordinated, collaborative manner — and we are accustomed to working under deal timelines.