Goodwill recorded by an acquiree in a business combination must be:
A) recognised at fair value on acquisition.
B) recognised at carrying amount on acquisition.
C) not recognised in the business combination.
D) none of the above.

Question

Quizplus · Accepted Answer

Goodwill is not recognized by the acquiree in a business combination; it is recognized by the acquirer as the excess of the purchase price over the fair value of the identifiable net assets acquired.

Goodwill Recorded by an Acquiree in a Business Combination Must