In accounting for a reverse acquisition,it is necessary to recognise the fair value of the net assets of:
A) the acquiree.
B) the acquirer.
C) both the acquiree and acquirer.
D) none of the above.

Question

Quizplus · Accepted Answer

In a reverse acquisition, the legal acquirer is the accounting acquiree, and the legal acquiree is the accounting acquirer. Therefore, the fair value of the net assets of the acquiree (legal acquirer) is recognized.

In Accounting for a Reverse Acquisition,it Is Necessary to Recognise