Which of the following statements is correct?
A)the identifiable assets acquired and the liabilities assumed must be measured at their fair value at acquisition date
B)the identifiable assets acquired and the liabilities assumed must be measured at their fair value at balance date
C)the identifiable assets acquired and the liabilities assumed must be measured at their recoverable amount at acquisition date
D)the identifiable assets acquired and the liabilities assumed must be measured at their book value at balance date

Question

Quizplus · Accepted Answer

According to the accounting standards, the identifiable assets acquired and the liabilities assumed must be measured at their fair value at acquisition date. This is known as the fair value accounting method and is used to accurately record the value of the assets and liabilities acquired during a business combination. This ensures that the financial statements of the acquiring company reflect the true value of the acquired assets and liabilities.

Which of the Following Statements Is Correct