Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Which of the following statements regarding the accounting for business combinations is false?

a. Goodwill is the difference between the consideration transferred by the acquirer to the acquiree and the fair value of identifiable assets acquired.
b. The acquirer in a business combination will only recognize the liabilities assumed if they meet the definition of liabilities and are part of the business combination transaction.
c. The identifiable assets acquired, liabilities assumed, and noncontrolling interest in the acquiree are recognized separately from the goodwill arising out of a business combination.
d. Under the acquisition method, the identifiable assets acquired during a business combination are measured at their acquisition- date fair values.

Sagot :

Tundexi

Answer:

Option A

Explanation:

Although goodwill is the difference between the consideration transferred by the acquirer to the acquiree it is not the fair value of the identifiable assets acquired rather it is the fair value of the net assets acquired.

The difference is fair value of identifiable assets is the value of the assets at some point of time which is expected to provide some future benefits.

The fair value of the net assets acquired is the total of the fair value of net assets minus liabilities.

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.