When an acquirer accounts for a business combination they have to consider:
I.recognition of the identifiable assets acquired
II. measurement of the identifiable assets acquired
III. recognition of the liabilities assumed
IV. measurement of the liabilities assumed
A) I and II only
B) I, II, III and IV
C) I and III only
D) II and IV only

Question

When an acquirer accounts for a business combination they have to consider: 
I.recognition of the identifiable assets acquired
II. measurement of the identifiable assets acquired
III. recognition of the liabilities assumed
IV. measurement of the liabilities assumed
A) I and II only
B) I, II, III and IV
C) I and III only
D) II and IV only

Quizplus · Accepted Answer

All four items need to be considered when accounting for a business combination. The acquirer needs to recognize and measure the identifiable assets acquired, as well as recognize and measure the liabilities assumed in the combination. Therefore, the correct choice is B - I, II, III and IV.

When an Acquirer Accounts for a Business Combination They Have