The date on which the acquirer obtains control of the acquiree is referred to as the:
A) business combination date.
B) acquisition date.
C) control date.
D) purchase date.

Question

Quizplus · Accepted Answer

The acquisition date is the date on which the acquirer obtains control of the acquiree through various means like purchase of shares, assets, or merger. It is also called the "effective date" or "closing date" of the transaction. Option A is incorrect because "business combination date" is a broader term that includes all the activities involved in the acquisition process, such as negotiations, due diligence, and post-combination integration. Option C and D are incorrect because they are not commonly used terms in accounting and financial reporting.

The Date on Which the Acquirer Obtains Control of the Acquiree