Who’s the accounting acquirer? Navigating new bus com guidance

PwC's accounting podcast

In this episode, we explain how to identify the accounting acquirer in an acquisition—an essential first step in accounting for a business combination. We also outline key changes in the FASB’s new guidance (ASU 2025-03, Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity) that impact this assessment.

In this episode, we discuss:

• 1:16 – Overview of business combinations and importance of identifying the acquirer
• 6:12 – New FASB guidance applicable when the legal acquiree is a variable interest entity (VIE)
• 10:33 – Factors to consider when determining the accounting acquirer
• 17:35 – Effective date and transition provisions for adopting the new guidance

For more information, see section 2.3 of our Business combinations guide.

You may also be interested in our related podcast episodes mentioned during this discussion:

• Accounting for business combinations: Being prepared for a deal – discusses the foundations of acquisition accounting
• The consolidation framework - Identifying a VIE – explores the evaluation of variable interests and the characteristics of a variable interest entity (VIE)

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About our guests

Ryan Blacker is a director in PwC’s National Office specializing in the accounting for business combinations and crypto assets. Ryan consults with clients and engagement teams on complex accounting and financial reporting matters related to these topics.

Matt Sabatini is a partner in PwC's National Office who helps clients and engagement teams navigate the accounting and financial reporting for complex transactions. He specializes in the accounting for M&A, consolidations, corporate reorganizations, recapitalizations, joint ventures, and other investments.

About our guest host

Guest host Diana Stoltzfus is a partner in the National Office who helps to shape PwC’s perspectives on regulatory matters, responses to rulemakings and policy development, and implementation related to significant new rules and regulations. Prior to rejoining PwC, Diana was the Deputy Chief Accountant in the Office of the Chief Accountant (OCA) at the SEC where she led the activities of the OCA’s Professional Practices Group.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected]

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1. Who’s the accounting acquirer? Navigating new bus com guidance (00:00:00)

2. Overview of business combinations and importance of identifying the acquirer (00:01:16)

3. New FASB guidance applicable when the legal acquiree is a variable interest entity (VIE) (00:06:12)

4. Factors to consider when determining the accounting acquirer (00:10:33)

5. Effective date and transition provisions for adopting the new guidance (00:17:35)