TRUE OR FALSE. 1. Under the shareholders' equity section of a consolidated statement of Financial Position, common shares consist of only the parent company's shares. 2. The date of acquisition is the date on which the buyer obtains control of the target business. This date is very important as the value of all of the amounts included in the business combination are measured at this date, and the buyer starts consolidation of the target for accounting. 3. In business combination, even if the acquirer does not acquire 100% of the target business, the acquired assets and assumed liabilities are recorded at 100% of their fair value 4. When obtaining control of the business, the acquirer must take an ownership stake of more than 50% in the business.
TRUE OR FALSE. 1. Under the shareholders' equity section of a consolidated statement of Financial Position, common shares consist of only the parent company's shares. 2. The date of acquisition is the date on which the buyer obtains control of the target business. This date is very important as the value of all of the amounts included in the business combination are measured at this date, and the buyer starts consolidation of the target for accounting. 3. In business combination, even if the acquirer does not acquire 100% of the target business, the acquired assets and assumed liabilities are recorded at 100% of their fair value 4. When obtaining control of the business, the acquirer must take an ownership stake of more than 50% in the business.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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TRUE OR FALSE.
1. Under the shareholders' equity section of a consolidated statement of Financial Position , common shares consist of only the parent company's shares.
2. The date of acquisition is the date on which the buyer obtains control of the target business. This date is very important as the value of all of the amounts included in the business combination are measured at this date, and the buyer starts consolidation of the target for accounting.
3. In business combination, even if the acquirer does not acquire 100% of the target business, the acquired assets and assumed liabilities are recorded at 100% of their fair value
4. When obtaining control of the business, the acquirer must take an ownership stake of more than 50% in the business.
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