In a business combination in which the consideration was cash, the target company's assets and liabilities are revalued to their current values for consolidated reporting purposes regardless of whether common stock or assets were acquired.

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In a business combination paid for in cash, the acquired company's assets and liabilities are indeed revalued to their fair market values on the acquisition date for the purpose of consolidated financial reporting, regardless of the form of the acquisition (whether through common stock or assets). This is in accordance with accounting standards that aim to reflect the true economic value of the acquired assets and liabilities at the time of the acquisition.

In a Business Combination in Which the Consideration Was Cash