Acquiree
The business or businesses that the acquirer obtains control of in a business combination.

Acquirer
The entity that obtains control of the acquirer.

Acquisition date
The date on which the acquirer obtains control of the acquirer.

Business combination
A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as ‘true mergers’ or ‘mergers of equals’ are also business combinations.

Contingent consideration
Usually, an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.

Equity interests
Equity interests are used broadly to mean ownership interests of investor-owned entities and owner, member, or participant interests of mutual entities.

Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Goodwill
An asset represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

Identifiable
An asset is identifiable if it either:
(a) is separable, ie capable of being separated or divided from the entity and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract, identifiable asset or liability, regardless of whether the entity intends to do so; or

(b) arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

Intangible asset
An identifiable non-monetary asset without physical substance.

Mutual entity
An entity, other than an investor-owned entity, that provides dividends, lower costs, or other economic benefits directly to its owners, members, or participants. For example, a mutual insurance company, a credit union, and a co-operative entity are all mutual entities.

Non-controlling interest
The equity in a subsidiary is not attributable, directly or indirectly, to a parent.