The fair value of assets and liabilities of the acquired entity is to be reflected in the financial statements of the combined entity. When the acquisition takes place over a period of time rather than all at once, at what time is the fair value of the assets and liabilities of the acquired entity determined under SFAS 141R?
A) the date the interest in the acquiree was acquired.
B) the date the acquirer obtains control of the acquiree
C) the date of acquisition of the largest portion of the interest in the acquiree.
D) the date of the financial statements.

Question

Quizplus · Accepted Answer

The fair value of the assets and liabilities of the acquired entity is determined at the date the acquirer obtains control of the acquiree, according to SFAS 141R.

The Fair Value of Assets and Liabilities of the Acquired