A company acquires all of the assets and liabilities of another company. Which statement is false?...
- A company acquires all of the assets and liabilities of another company. Which statement is false?
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A. |
The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books. |
|
B. |
The acquired company no longer exists as a separate entity. |
|
|
C. |
The acquiring company reports the acquired assets and liabilities at fair value at the date of acquisition. |
|
|
D. |
The acquiring company does not revalue its assets and liabilities to fair value at the date of acquisition. |
|
Homework Answers
When a company acquires another company and the purchase consideration is more than the difference between assets and liabilities acquired, then intangible asset arises in the form of goodwill.
The statement “The acquiring company does not report acquired intangible assets unless they are already reported on the acquired company's books” is incorrect.
Option A
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