Where the acquirer purchases assets and assumes liabilities of another entity it does NOT need to consider measurement of:
A) consideration transferred
B) fair values of identifiable net assets
C) carrying amounts of identifiable net assets
D) goodwill

Question

Quizplus · Accepted Answer

In an acquisition where assets are purchased and liabilities are assumed, the focus is on the fair values of the identifiable net assets acquired, not their carrying amounts. The consideration transferred, the fair values of the identifiable net assets, and any resulting goodwill are key measurements in such transactions.

Where the Acquirer Purchases Assets and Assumes Liabilities of Another