Definitions for "Allocation Period"
The period that is required to identify and measure the fair value of the assets acquired and the liabilities assumed in a business combination. The allocation period ends when the acquiring entity is no longer waiting for information that it has arranged to obtain and that is known to be available or obtainable. Thus, the existence of a preacquisition contingency for which an asset, a liability, or an impairment of an asset cannot be estimated does not, of itself, extend the allocation period. Although the time required will vary with circumstances, the allocation period should usually not exceed one year from the consummation of a business combination (FASB Statement No. 38, Accounting for Preacquisition Contingencies of Purchased Enterprises, paragraph 4(b)).
Period of time in which the allocated resources can be used. For MRAC academic users, periods start the first day of each quarter (i.e., on January 1, April 1, July 1, and October l) and end 12 months later. LRAC academic users start the first day of April or October and end 12 months later.