HomeworkLib
Question

Where the acquirer purchases the assets and assumes the liabilities of another entity, it does not...

Where the acquirer purchases the assets and assumes the liabilities of another entity, it does not need to consider the measurement of:

Select one:

a. goodwill or a gain from bargain purchase.

b. the equity of the acquiree.

c. the liabilities assumed.

d. the identifiable assets.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Option B :- The equity of acquiree

Explanation

The acquisition method (called the 'purchase method' in the 2004 version of IFRS 3) is used for all business combinations. [IFRS 3.4]

Steps in applying the acquisition method are: [IFRS 3.5]

Identification of the 'acquirer' Determination of the 'acquisition date' Recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest (NCI, formerly called minority interest) in the acquiree Recognition and measurement of goodwill or a gain from a bargain purchase

0 0
Add a comment
Know the answer?
Add Answer to:
Where the acquirer purchases the assets and assumes the liabilities of another entity, it does not...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in...

    1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree recognized? Select one: a. When an acquirer is identified b. Acquisition date c. Date of verbal agreement d. 90 days after acquisition date 2.Which of the following is not an example of a transaction cost? Select one: a. Finder's fee b. Investigatory costs c. Depreciation costs d. Facilitatory costs 3.Which of the following is not a step for acquiring a subsidiary? Select...

  • Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis...

    Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a: Select one: O again on bargain purchase of $2 000. b.goodwill of $2 000. O C. gain on bargain purchase of $60 000. O d. goodwill of $14000.

  • c. How does the partial equity method differ from the equity method? a. Under the partial...

    c. How does the partial equity method differ from the equity method? a. Under the partial equity method, the balance in the investment account is not decreased by amortization on allocations made in the acquisition of the subsidiary b. In the total assets reported on the consolidated balance sheet In the treatment of dividends d. In the total liabilities reported on the consolidated balance sheet In a business combination when the fair value of the assets and liabilities assumed exceed...

  • A company acquires the assets and liabilities of another company.

    A company acquires the assets and liabilities of another company. The fair value of the acquired company's identifiable net assets is $8,000,000 The acquisition transaction includes the following: $7,000,000 in cash paid to the former owners of the acquired company 125,000 new shares of stock with a market value $55/share. Registration fees, paid in cash, were $1,000,000 .$3,000,000 in cash paid to the underwriter for consulting services Earnings contingency with an expected present value of $2.000,000 at the date of acquisition Goodwill for this...

  • Question 18-20 are based off this sane chart 2019 2018 2017 (At December 31) Current assets...

    Question 18-20 are based off this sane chart 2019 2018 2017 (At December 31) Current assets Tangible fixed assets Intangible assets. Total assets.. $285,000 662,500 40.000 $987,500 $277.500 575,000 45,000 $897.500 $207.000 563.000 50,000 $320,000 Current liabilities Noncurrent liabilities Common stock Additional pald-in capital Retained earnings Stockholders' equity Total liabilities and equity $120,000 266,250 100,000 100,000 400,000 600,000 $110,000 242,500 100,000 100.000 345,000 545,000 $897500 $100,000 220,000 100,000 100,000 300,000 500,000 $820,000 $986250 2012 2018 (For the years ended December...

  • A company acquires all of the assets and liabilities of another company. Which statement is false?...

    A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books. B. The acquired company no longer exists as a separate entity. C. The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. D. The acquiring company does not revalue its assets and liabilities to fair value at...

  • Company A purchases Company B. This is a 100% equity purchase which means that Company A...

    Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B. Calculate the Price that Company A paid for Company B in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($). Assume the current market value of tangible physical assets is $1,492,000 (determined by Company A as at the acquisition date) the current market...

  • Company A purchases Company B. This is a 100% equity purchase which means that Company A...

    Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B. Calculate the Price that Company A paid for Company B in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($). Assume the current market value of tangible physical assets is $1,492,000 (determined by Company A as at the acquisition date) the current market...

  • Company A purchases Company B. This is a 100% equity purchase which means that Company A...

    Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B. Calculate the Price that Company A paid for Company B in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($). Assume • the current market value of tangible physical assets is $864,000 (determined by Company A as at the acquisition date) the current...

  • Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than...

    Company Y is purchased by Company X, at an acquisition cost that is $100,000 greater than the fair value of the identifiable net assets acquired. One of the assets acquired is a building, originally valued at $37,000 at the date of the purchase. Six months after the acquisition, it is discovered that the building was really only worth $25,000 at the date of acquisition. What entry is made to reflect this new information? a.   A debit of $12,000 to Loss...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT