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Arlecino [84]
3 years ago
15

Which of the following statements regarding the accounting for business combinations is false?

Business
1 answer:
steposvetlana [31]3 years ago
7 0

Answer:

Option A

Explanation:

Although goodwill is the difference between the consideration transferred by the acquirer to the acquiree it is not the fair value of the identifiable assets acquired rather it is the fair value of the net assets acquired.

The difference is fair value of identifiable assets is the value of the assets at some point of time which is expected to provide some future benefits.

The fair value of the net assets acquired is the total of the fair value of net assets minus liabilities.

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