Asked by Finance 2B Prasmul on Jun 18, 2024
Verified
All assets acquired in a business combination must be recognised at fair value.
Fair Value
An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing, unrelated parties.
Business Combination
A transaction or event that brings two or more companies together to form a single entity, often through mergers, acquisitions, or consolidations.
- Acquire knowledge of the essential principles and effects of appraising all assets acquired during a business integration at fair value.
Verified Answer
NO
Naomi OjokojoJun 19, 2024
Final Answer :
False
Explanation :
Not all assets acquired in a business combination must be recognized at fair value. Some assets, such as deferred tax assets, assets related to employee benefits, and indemnification assets, may be recognized based on specific accounting standards that deviate from the fair value principle.
Learning Objectives
- Acquire knowledge of the essential principles and effects of appraising all assets acquired during a business integration at fair value.
Related questions
A Company Purchases All the Issued Shares of B Company ...
The Recorded Equity of a Subsidiary at Acquisition Will Always ...
On April 1, 2019, the Balance Sheets of Optimum Inc ...
Sonic Enterprises Inc Has Decided to Purchase 100% of the ...
Byron Limited Estimated the Net Present Value of Future Cash ...