Question

For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except: Multiple Choice

a. Identifiable assets acquired, at fair value.
b. Liabilities assumed, at book value.
c. Non-controlling interest, at fair value.
d. Goodwill or a gain from bargain purchase.

Answer 1

b. Liabilities assumed, at book value.

Step-by-step explanation:

International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) require everything (Assets, Liabilities and Non-controlling interest) to be measured at the fair market value, the amount a third-party would pay on the open market, at the time of acquisition — the date that the acquirer took control of the target company.