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If the acquirer's interest in the net fair value of the identifiable asset liabilities exceeds the cost of the business combination, the acquirer I. Reassess the identification and measurement of the acquiree's ide and contingent liabilities and the measurement of the cost of the co II. Recognize immediately in retained earnings any excess remaining

If the acquirer's interest in the net fair value of the identifiable asset liabilities exceeds the cost of the business combination, the acquirer I. Reassess the identification and measurement of the acquiree's ide and contingent liabilities and the measurement of the cost of the co II. Recognize immediately in retained earnings any excess remaining

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the acquirer shall I. Reassess the identification and measurement of the acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the combination. II. Recognize immediately in retained earnings any excess remaining after the reassessment. O Neither I nor II O I only O Il only O Both I and II
Transcribed Image Text:If the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the acquirer shall I. Reassess the identification and measurement of the acquiree's identifiable assets, liabilities and contingent liabilities and the measurement of the cost of the combination. II. Recognize immediately in retained earnings any excess remaining after the reassessment. O Neither I nor II O I only O Il only O Both I and II
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