When using the acquisition method to account for a business combination,the subsidiary's assets and liabilities are reported on the consolidated balance sheet at their fair values regardless of the level of ownership attributable to the minority shareholders.

Question

Quizplus · Accepted Answer

When using the acquisition method, the assets and liabilities of the subsidiary are recognized and measured at their fair values regardless of the level of ownership attributable to the minority shareholders. As a result, the consolidated financial statements reflect the entire fair value of the acquired company, including the portion attributable to minority shareholders.

When Using the Acquisition Method to Account for a Business