Final answer:
"True. Benefits expected to arise following a business combination that can be estimated at the acquisition date should be recognized as assets in recording the combination."
Step-by-step explanation:
True. Benefits expected to arise following a business combination that can be estimated at the acquisition date should be recognized as assets in recording the combination. This concept is in line with the accounting principle of purchase consideration, where the acquiring company recognizes the fair value of assets acquired and liabilities assumed.
For example, if Company A acquires Company B, and Company B has valuable patents that can be estimated and quantified at the acquisition date, those patents would be recognized as assets on Company A's balance sheet.
This recognition of estimated benefits as assets is important for providing a more accurate representation of the acquiring company's financial position and performance post-combination.