Which of the following is not correct with respect to mergers under the rules established by FASB Statement No. 164, Not-for-Profit Entities: Mergers and Acquisitions?

Question

Quizplus · Accepted Answer

A merger is a transaction in which the governing bodies of two or more not-for-profit entities relinquish control of those entities to create a new not-for-profit entity. The new entity recognizes the assets and liabilities of the separate merging entities in the amounts and classifications reported in the statements of the merging entities. Goodwill is not recorded. The entity resulting from the merger is a new reporting entity, with no activity before the date of the merger.

Which of the Following Is not Correct with Respect