acquisition where there is an exchange of assets for assets, how does the ownership structure of the acquiree change? A. The net assets decrease B. The net assets may increase, decrease or remain the same. C. The net assets increase D. There is no chan
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In an acquisition where there is an exchange of assets for assets, how does the ownership structure of the acquiree change?
A. The net assets decrease
B. The net assets may increase, decrease or remain the same.
C. The net assets increase
D. There is no change in the net assets
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- In an acquisition where there is an exchange of assets for assets, how does the ownership structure of the acquiree change? There is no change in the net assets The net assets increase The net assets decrease The net assets may increase, decrease or remain the same.A) In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of acquisition’. How would you determine the ‘costs of acquisition’ of an asset?B)How are changes in accounting policies accounted for and disclosed?S1: In an acquisition where the acquirer pays cash for the acquiree assets, thebook value of the acquirer. S2: In acquisition of assets for assets, the ownership structure of the acquiree does not change A. Both statements are incorrect.B. Only S1 is correct.C. Both statements are correct.D. Only S2 is correct.
- In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of acquisition’. How would you determine the ‘costs of acquisition’ of an asset?How are changes in accounting policies accounted for and disclosed?In an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B. Cash C. Liability D. Any of the givenS1: In an acquisition where the acquirer pays cash for the acquiree assets, the book value of the acquiree is to be used for valuation. S2: In acquisition of assets for assets, the ownership structure of the acquiree does notchange Both statements are Only S2 is Only S1 is Both statements are 2. If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be Allocatedgoodwill Allocated to reduce long-livedassets Allocated to reduce any previously recorded goodwill and classify any remainder as an ordinary Allocated to reduce current and long-livedassets
- Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration given to acquire them at the time of acquisition most closely describes which measurement of fi nancial statement elements? B . Historical cost.Statement I. Upon consolidation, the goodwill account should be debited in the elimination entry if the consideration transferred, previously held interest, and non-controlling interest are less than the fair value of net assets acquired.Statement II. In a net asset acquisition, the acquirer should recognize the goodwill as an asset in its separate financial statements. a. Both statements are true. b. Both statements are false. c. Statement I is true; Statement II is false. d. Statement I is false; Statement II is true.
- (TCO E) What is the purpose of the adjustments to depreciation expense within the consolidated group when there has been an intra-entity transfer of a depreciable asset?When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at:(CO 3) An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset. Which statement is true with respect to the year following the year in which the transfer occurred? Group of answer choices A worksheet entry is made with a debit to gain for a downstream transfer. A worksheet entry is made with a debit to gain for an upstream transfer. A worksheet entry is made with a debit to investment in subsidiary for a downstream transfer when the parent uses the equity method. A worksheet entry is made with a debit to retained earnings for a downstream transfer, regardless of the method used account for the investment. No worksheet entry is necessary.