At the date of acquisition, the assets and liabilities of the subsidiary are carried forward into the consolidated statement of financial position at fair value.

Question

Quizplus · Accepted Answer

This statement is true. When a company acquires a subsidiary, the assets and liabilities of the subsidiary are recorded at fair value in the consolidated financial statements. This ensures that the consolidated financial statements reflect the economic reality of the combined entity.

At the Date of Acquisition, the Assets and Liabilities of the Subsidiary