In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs,which of the following is correct?
A)Firms are not required to disclose the name of the acquired company.
B)Firms are not required to disclose the business purpose for a combination.
C)Firms are required to disclose the nature,terms and fair value of consideration transferred in a business combination.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Firms are required to disclose the nature, terms, and fair value of consideration transferred in a business combination. They are also required to disclose information about the acquired company, such as its name, assets, liabilities, and any goodwill or intangible assets acquired. Additionally, firms must disclose the business purpose for the combination and any significant changes in accounting policies resulting from the combination.

In Reference to the FASB Disclosure Requirements About a Business