18A4 - CAR - Business Combination I

When an acquirer purchases a business from another entity, the following items must be measured at fair value except:

• Consideration paid for the assets.

• Consideration paid for the liabilities.

• Consideration paid for the contingent liabilities.

• Consideration paid for the equity of the acquiree.

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 acquiree.

• control was achieved by the acquirer.

• on which specific assets are delivered to the acquirer

Goodwill is measured as the difference between the:

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

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

Goodwill arising in a business combination is classified as an .............

Consideration transferred is measured at ............... at acquisition date.