Which of the following statements is correct?
A) Beginning in 2011, companies may choose between the Purchase Method and the Acquisition Method when accounting for Business Combinations.
B) Beginning in 2011, the only acceptable method of accounting for Business Combinations is the Purchase Method.
C) Beginning in 2011, the only acceptable method of accounting for Business Combinations is the Acquisition Method.
D) The Purchase Method can only be used when Cash is the sole consideration offered by the acquirer in a Business Combination.

Question

Quizplus · Accepted Answer

Beginning in 2011, the Acquisition Method became the only acceptable method for accounting for Business Combinations, as per the updated accounting standards.

Which of the Following Statements Is Correct