Lessee leases acquired in
business combinations
RSM | 11
Different basis of accounting
▪ If an acquiree's accounting pre-acquisition is not under US
GAAP, the acquirer must convert it to US GAAP
▪ he acquirer would need to assess the acquiree's
preacquisition lease classification would have been under
ASC 842 based on the facts and circumstances as of the
date the acquiree would have undertaken that assessment
