Which of the following statements regarding the acquisition analysis is FALSE?
A)The acquisition analysis may include the recognition of assets and liabilities not recognized in the records of the subsidiary.
B)Differences between carrying amounts and fair values of the identifiable assets and liabilities of the subsidiary at acquisition date are recognized using fair value adjustments.
C)The acquisition analysis will determine whether any goodwill or gain on bargain purchase has arisen as a part of the business combination.
D)Where at acquisition date the parent holds shares in the subsidiary that it has previously acquired before it was a parent, this investment must not be revalued.

Question

Quizplus · Accepted Answer

This statement is false as the investment that the parent holds in the subsidiary before it becomes a parent is considered as an investment and must be revalued as per the fair value adjustments at the acquisition date.

Which of the Following Statements Regarding the Acquisition Analysis Is