For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except:
A) identifiable assets acquired, at fair value.
B) liabilities assumed, at book value.
C) non-controlling interest, at fair value.
D) goodwill or a gain from bargain purchase.
E) none of these choices is correct.

Question

Quizplus · Accepted Answer

The acquirer recognizes and measures identifiable assets acquired, liabilities assumed, non-controlling interest, and goodwill or a gain from bargain purchase at the acquisition date. However, the liabilities assumed are recognized at fair value, not book value, which is the difference between the fair value of liabilities and the carrying amount of liabilities assumed.

For Business Combinations Involving Less Than 100 Percent Ownership, the Acquirer