Acquisitions and goodwill (ASC 805)

The published calculation method and the company decisions it uses.

What Vanward calculates

Purchase allocation, goodwill or bargain gain, amortization and earnout changes.

The method

  1. Add cash, stock, contingent consideration and seller notes. Subtract net identifiable assets, including liabilities as negatives, to obtain goodwill or a bargain purchase gain. Apply the elected private-company intangible treatment.
  2. Amortize finite-lived intangibles and elected goodwill using differences in cumulative rounded cents over the entered life. Final balances clear to zero. Subsequent earnout fair value changes go to earnings rather than goodwill.

What the company decides

Fair values, consideration, identification of assets and liabilities, private-company elections, useful lives and earnout measurements. These inputs and judgments are outside the guarantee.

Where it shows in Vanward

Acquisitions workspace, allocation versions, schedules and proposed entries.

Method change log

  • 2026-11-09 · 1.0 published

The Vanward Guarantee · All methods