CHerman,
I finally go to it.Based upon what I read, it has to do with when you recognize the value of an asset being acquired or a liability assumed. In paragraph 7, it simply states if you know the value of the item (aaset or liability) prior to acquisition, use that value. In paragraph 8, if you do not know the value ot the item at acquisition data, you are allowed to make a reasonable estimate. In paragraph 9, if you don't know the value at acquisition and cannot make an estimate you don't recognize the item as an asset or liability until you can value it.
For example, let's say you're purchase some property and the property is contaminated. The cost of the property is $100,000. From paragraph 7, if you purchased the property outright without any thought about cleanup. The asset would be valued at 100k. If cleanup were to cost $25000. The asset would be worth $75000. From paragraph 8, let's say you did an phase I and II site assessment but had not received all the results back. Then the value of the asset would be 100k plus the cost of the assessment minus some reasonable estimate of the cost of clean up. From 9, the situation would be you've purchased the land and you hear from an the tax assessor that there is additional land attached to the deed. Until you get it the situation straightened out, the additional land would not be included as part of your balance sheet.
Did I even come close to answering your question?
MikeCJ