BC5-BC13

BC5 The FASB’s 1999 Exposure Draft proposed that a business combination should be defined as occurring when one entity acquires net assets that constitute a business or acquires equity interests in one or more other entities and thereby obtains control over that entity or entities. Many respondents who commented on the proposed definition said that it would exclude certain transactions covered by APB Opinion No. 16 Business Combinations (APB Opinion 16), in particular, transactions in which none of the former shareholder groups of the combining entities obtained control over the combined entity (such as roll‑ups, put‑togethers and so‑called mergers of equals). During its redeliberations of the 1999 Exposure Draft, the FASB concluded that those transactions should be included in the definition of a business combination and in the scope of SFAS 141. Therefore, paragraph 10 of SFAS 141 indicated that it also applied to business combinations in which none of the owners of the combi

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