The proposed amendments would require an acquirer to recognize and measure contract assets and contract liabilities in a business combination based on the guidance of ASC 606 rather than fair value.
Would require entities to use principles in ASC 606 to recognize and measure contract assets and liabilities in revenue contracts acquired in a business combination rather than fair value.
Would not change the requirements to recognize and measure, at fair value, other customer-contract intangibles – e.g. backlog intangible, favorable contract intangible, unfavorable contract liability.
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