For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except: Multiple Choice

a. Identifiable assets acquired, at fair value.

b. Liabilities assumed, at book value.

c. Non-controlling interest, at fair value.

d. Goodwill or a gain from bargain purchase.

Question

Business

Navarro

23 April, 13:10

For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except: Multiple Choice

a. Identifiable assets acquired, at fair value.

b. Liabilities assumed, at book value.

c. Non-controlling interest, at fair value.

d. Goodwill or a gain from bargain purchase.

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Answers (1)

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Nelson Williamson · Answer 1

b. Liabilities assumed, at book value.

Explanation:

International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) require everything (Assets, Liabilities and Non-controlling interest) to be measured at the fair market value, the amount a third-party would pay on the open market, at the time of acquisition - the date that the acquirer took control of the target company.