19A1 - Advanced Fin. Accounting - Business Combination II

The criterion used when determining the acquisition date for a business combination is the date:

• on which the consideration was paid by the acquirer.

• on which the consideration was received by the acquirer.

• control was achieved by the acquirer.

• on which specific assets are delivered to the acquirer.

The cost of acquisition in a business combination is measured as the fair value of the:

• consideration given.

• costs directly attributable to the combination.

• consideration received.

• consideration given plus directly attributable costs.

Goodwill is measured as the difference between the:

• present value of the acquisition consideration, and the present value of the net assets acquired.

• consideration given, and the fair value of the net assets and contingent liabilities acquired.

• cost of the assets given up, and the cost of the net assets acquired.

• cost of the net assets acquired, and the net present value of the consideration given up.

Financial statements prepared subsequent to a business combination reflect the combined entity only from the date of (a)  

(a)   is a business combination in which the acquired company’s assets and liabilities are combined with those of the acquiring company, resulting in no additional organizational components.