In a business combination, the acquirer is the party that:
A) sells the acquired entity.
B) obtains control of the other entities.
C) receives the acquisition consideration.
D) concedes control over the acquired entities.

Question

Quizplus · Accepted Answer

The acquirer is the party that obtains control of the other entities in a business combination. This is usually achieved by acquiring a controlling interest in the acquired entity, such as through the purchase of its shares or assets. The acquirer is the one who is responsible for consolidating the financial statements of the acquired entity into its own financial statements. The acquirer may also pay the acquisition consideration, but this is not the defining characteristic of the acquirer.

In a Business Combination, the Acquirer Is the Party That