Which of the following statements is incorrect?
A)the acquisition date is defined as the date at which the acquirer obtains control of the acquiree
B)the acquisition date is defined as the date at which acquirer obtains significant influence over the acquiree
C)control indicates that the acquirer has the capacity to obtain benefits from the activities of the acquired entity or business
D)the acquisition date represents the time at which the fair value of the acquisition consideration must be measured

Question

Quizplus · Accepted Answer

The acquisition date is not defined as the date at which the acquirer obtains significant influence over the acquiree. Rather, it is defined as the date at which the acquirer obtains control of the acquiree. Significant influence is a lower level of influence than control and is defined as the power to participate in the financial and operating policy decisions of the investee, but not control over those policies.

Which of the Following Statements Is Incorrect