Need typed answer .Please give answer within 30 minutes Empirical evidence on acquisitions indicatesshareholders of the selling company, andbuying company.a. no; substantialb.O c.d.substantial; substantialsubstantial; nono; noexcess returns on average to theexcess returns on average to those of the

The acquisition of a company refers to its purchase by another company. It is usually carried out to…

Empirical evidence on acquisitions indicates shareholders of the selling company, and buying company. a. O b. no; substantial d. substantial; substantial C. substantial; no no; no excess returns on average to the excess returns on average to those of the

Empirical evidence on acquisitions indicates shareholders of the selling company, and buying company. a. O b. no; substantial d. substantial; substantial C. substantial; no no; no excess returns on average to the excess returns on average to those of the

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 3C

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Question

Need typed answer .Please give answer within 30 minutes

Empirical evidence on acquisitions indicates
shareholders of the selling company, and
buying company.
a. no; substantial
b.
O c.
d.
substantial; substantial
substantial; no
no; no
excess returns on average to the
excess returns on average to those of the

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Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal year
Which of the following is NOT included in the cost of an acquired company? (applying section 19 of IFRS for SMEs) a. Contingent consideration determinable at the consummation date of the combination b. Finder’s fee for arranging the combination c. Cost of registering and issuing equity securities d. None of the above
In a business combination achieved in stages, if the acquisition date fair value of the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities of the acquiree is higher than the aggregate of the (1) acquisition date fair value of the consideration transferred by the acquirer; (2) amount of noncontrolling interest measured at fair value or proportionate share; and (3) acquisition date fair value of acquirer's previously held equity interest in the acquire, the difference shall be accounted for by the acquirer in its consolidated statement of financial position as:A. GoodwillB. Deduction directly to retained earningsC. Expense as incurredD. Gain on bargain purchase
In the equity method of acquisition income is recognized only when the subsidiary declares dividends Select one: True False
How shall an acquirer in a business combination account for the changes in fair value contingent consideration classified as equity instrument if the changes result from events after the acquisition date? a. The changes in fair value of contingent consideration classified as equity shall be recognized as gain or loss in profit or loss because they are not measurement period adjustments. b. Contingent consideration classified as equity shall not be re-measured and its subsequent settlement shall be accounted for within equity. c. The changes in fair value of contingent consideration classified as equity shell be retrospectively restated to beginning retained earnings because they are prior period error. d. The change in fair value of contingent consideration classified as equity shall be retroactively adjusted to goodwill/gain on bargain purchase because they are measurement period adjustments.
For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.
What is the correct method for treating a vesting differential linked to the acquisition of shares? privileged rights of the subsidiary by the parent company? Select an answer: a. It must be allocated to identifiable net assets or goodwill. b. It must be distributed in proportion to the identifiable assets and liabilities of the subsidiary. c. It must be charged to consolidated retained earnings or credited to contributed surplus. d. It must be taken care of in the current year.
At initial recognition, an entity may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is A. Acquired principally for the purpose of selling it in the near term. B. A derivative. C.None of these. D. On initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking.
For fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity?A . Th ey are not recognized
S1: The acquisition-related costs in a business combination to be expensedimmediately include cost of issuing debt securities. S2: In a business combination any “gain on bargain purchase” shall be recognized in other comprehensive income. A. Only S1 is correct.B. Only S2 is correct.C. Both statements are incorrect.D. Both statements are correct.
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