At acquisition date which of the following is not required to be recognised by the acquirer?
A) Liabilities assumed.
B) non-controlling interest in the acquiree.
C) goodwill separately from the identified assets acquired
D) Retained earnings of the acquiree.

Question

Quizplus · Accepted Answer

At the acquisition date, retained earnings of the acquiree are not required to be recognized by the acquirer. This is because retained earnings are already included in the total equity of the acquiree, which is recognized as part of the non-controlling interest in the acquiree. The acquirer only needs to recognize the identifiable assets, liabilities assumed, and goodwill separately from the identified assets acquired.

At Acquisition Date Which of the Following Is Not Required