Acquirer and Acquiree are the combining entities in a business combination. As part of the bargain, Acquirer assumed a contingent liability based on a suit brought against Acquiree because of a defect in one of its products. However, the former owner of Acquiree has agreed to pay the amount of any damages in excess of $5,000,000. In the consolidated balance sheet issued on the acquisition date, the contingent liability is reported at acquisition-date fair value. Accordingly,

The CPA Business Analysis and Reporting (BAR) discipline focuses on advanced, high-level accounting, analyzing financial data for decision-making, and specialized reporting (10-20% gov't).

Key concepts include financial statement analysis, cost/variance analysis, complex technical reporting (consolidations, derivatives, leases), and government-wide financial statement conversion.