Final answer:
In a business combination achieved in stages, the acquirer may recognize a gain or loss on investment revaluation at the acquisition date.
Step-by-step explanation:
In a business combination achieved in stages, the acquirer may recognize a gain or loss on investment revaluation at the acquisition date.
This statement is True.
When a business combination is achieved in stages, the acquirer needs to revalue its investment in the target company at the acquisition date. This revaluation may result in a gain or loss depending on the fair value of the acquired assets and liabilities compared to their carrying amounts. This gain or loss is recognized in the acquirer's financial statements as part of the business combination accounting.