Asked by
Sakshi Agarwal
on Nov 02, 2024
Verified
Which of the following statements regarding the acquisition analysis is incorrect?
A) It determines whether there is goodwill on acquisition or a gain on bargain purchase.
B) It is considered the first step in the consolidation process.
C) It calculates and compares the fair value of the consideration transferred with the fair value of the net identifiable assets and liabilities acquired.
D) It calculates the fair value of the net identifiable assets and liabilities acquired based on the value of the post-acquisition equity in the subsidiary.
Acquisition Analysis
The process of evaluating the financial, operational, and strategic aspects of a target company during a merger or acquisition.
Post-acquisition Equity
The value of the equity interest in a subsidiary held by a parent company after adjusting for the cost of acquisition and other factors.
- Determine and measure the value of goodwill or benefits of bargain purchases during business mergers.
- Perceive the significance and ramifications of valuation adjustments made before acquisition and at the time of business merging.
Verified Answer
AS
Learning Objectives
- Determine and measure the value of goodwill or benefits of bargain purchases during business mergers.
- Perceive the significance and ramifications of valuation adjustments made before acquisition and at the time of business merging.