In an acquisition,the definition of a reporting unit usually does not involve which of the following?
A)separate accounting.
B)synergies of the combination.
C)being easily separable from the company
D)being managed as a separate segment.

Question

Quizplus · Accepted Answer

The definition of a reporting unit usually involves separate accounting, being managed as a separate segment, and being easily separable from the company. However, the concept of synergies of the combination is not typically used to define a reporting unit in an acquisition. Rather, it is used to assess the expected benefits from the combination of two or more reporting units.

In an Acquisition,the Definition of a Reporting Unit Usually Does