Which of the following correctly describes the importance of the acquisition date in business combination accounting?
A) The acquisition date is the date that the consideration transferred in a business combination is measured, including contingent consideration and the acquirer's equity interests issued to the seller.
B) The acquisition date is the date that assets acquired, liabilities assumed, and non-controlling interests are measured.
C) The acquisition date is the date that the acquirer begins consolidating the entity.
D) All of the above

Question

Quizplus · Accepted Answer

The acquisition date is crucial in business combination accounting because it is the point at which the consideration transferred, the assets acquired, liabilities assumed, non-controlling interests, and the start of consolidation are measured and recognized.

Which of the Following Correctly Describes the Importance of the Acquisition