If differences between the fair value and the book value of recorded assets are identiﬁable, appropriate adjustments to asset balances should be considered.Since a change in ownership structure creates a new, distinct legal entity, every attempt should be made to identify differences between fair and:

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Differences between fair value and book value of recorded assets are crucial for accurate financial reporting and asset valuation. When ownership changes, identifying these differences ensures that the new entity's financial statements reflect the true value of its assets.

If Differences Between the Fair Value and the Book Value