Which is incorrect concerning the date of exchange in a business combination? * O The acquisition date is the date on which the acquirer effectively obtains control of the acquiree. When a business combination is achieved through a single exchange transaction, the date of exchange is the acquisition date. When a business combination is achieved in more than one exchange transaction, the date of exchange is the date that each individual investment is recognized in the financial statement of the acquirer. The date of exchange is the date on which a substantive agreement between the combining entities is reached and in the case of publicly listed entities, announced to the public.
Which is incorrect concerning the date of exchange in a business combination? * O The acquisition date is the date on which the acquirer effectively obtains control of the acquiree. When a business combination is achieved through a single exchange transaction, the date of exchange is the acquisition date. When a business combination is achieved in more than one exchange transaction, the date of exchange is the date that each individual investment is recognized in the financial statement of the acquirer. The date of exchange is the date on which a substantive agreement between the combining entities is reached and in the case of publicly listed entities, announced to the public.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Which is incorrect concerning the date of exchange in a business combination?
*
O The acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
When a business combination is achieved through a single exchange transaction, the date of exchange is the
acquisition date.
When a business combination is achieved in more than one exchange transaction, the date of exchange is the
date that each individual investment is recognized in the financial statement of the acquirer.
The date of exchange is the date on which a substantive agreement between the combining entities is reached
and in the case of publicly listed entities, announced to the public.
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