Disclosure Requirements - Acquisition Method

Question 1

When provisional amounts for a business combination are reported in financial statements, what must be disclosed about those amounts?

Answer 1

1. )Identification of the items (assets, liabilities, equity or consideration) for which accounting is not complete;
2. )The reasons why the accounting is not finalized;
3. )The nature and amounts of any measurement period adjustments made to the provisional amounts during the reporting period

Question 2

Identify the most significant general information about a business combination that must be disclosed.

Answer 2

1. )Name and description of the acquired business;
2. )The acquisition date;
3. )The percentage voting interest acquired (if relevant);
4. )How the acquirer gained control of the acquired business;
5. )The primary reason for the business combination

Question 3

In which periods does an acquirer have to disclose information about a business combination in its financial statements?

Answer 3

In the reporting period in which the combination occurs and in each reporting period that includes the measurement period

Question 4

What information must be disclosed about Goodwill recognized in a business combination?

Answer 4

1. )A quantitative description of the factors that make up the Goodwill;
2. )The amount of Goodwill expected to be deductible for tax purposes;
3. )The amount of Goodwill assigned to each reportable segment;
4. )During the measurement period, a reconciliation of the beginning and ending balance in Goodwill