Where the acquirer purchases the assets and assumes the liabilities of another entity, it does not need to consider the measurement of:
A) the liabilities assumed.
B) the identifiable assets.
C) the equity of the acquiree.
D) goodwill or a gain from bargain purchase.

Question

Quizplus · Accepted Answer

When an acquirer purchases the assets and assumes the liabilities of another entity, it needs to measure the fair value of the identifiable assets and liabilities assumed, as well as recognize any goodwill or gain from bargain purchase resulting from the transaction. However, it does not need to consider the equity of the acquiree, as this will be settled as part of the transaction.

Where the Acquirer Purchases the Assets and Assumes the Liabilities