Indemnified Assets and Liabilities

GAAP Part 4.1 Indemnified Assets Exception

Exception 01 - Indemnified Assets (ASC 805-20)

Were there any indemnified assets/liabilities involved in the combination? (ASC 805-20-25-27) The ASC Master Glossary defined indemnified as follows; to “indemnify” means to secure against hurt, loss, or damage. These arrangements constitute a contractual indemnification against the outcome of a contingency or uncertainty with an asset or liability. Lawsuits or uncertain tax positions are examples of uncertainties that may be indemnified against. ASC 805 25-27 *

Yes

Is the item recognized and measured at FV at the acquistion date? *

Yes

Is the item recognized as of the acquisition date, but measured at an amount other than FV? *

Yes

Is the item unrecognized as of the acquisition date? *

Yes

Was important information about the item received shortly after the acquisition date? *

Yes

Exception does not apply.

Not recognized as part of the business combination.

Recognize and measure at FV, adjusted for contractual limitations and the credit risk of the indemnifying party.

Recognize and measure by using assumptions that are consistent with those used to measure the item, adjusted for contractual limitations and the credit risk of the indemnifying party.

Recognized as of the acquisition date, but indemnification only gives the acquirer the ability to recover a portion of the amount.

Adjust provisional amounts recognized on Financial Statements.

If you are human, leave this field blank.