When an Acquisition of Another Company Occurs, FASB Requires Disclosing

question 29

Multiple Choice

When an acquisition of another company occurs, FASB requires disclosing all of the following except:

• A)amounts recorded for each major class of assets and liabilities.
• B)information concerning contingent consideration including a description of the arrangements and the range of outcomes.
• C)results of operations for the current period if both companies had remained separate.
• D)A qualitative description of factors that make up the goodwill recognized.

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Definitions:

Available Resources

Refers to the tools, personnel, time, and other assets that are accessible and can be utilized to achieve project objectives.

Risk Mitigation

Strategies and approaches used to reduce or control the probability and impact of negative events or risks on a project.

Risk Transfer

The strategy of passing financial risk from one party to another, often through the use of insurance or outsourced contracts.

Risk Breakdown Structure

A hierarchical decomposition of risks associated with a project, categorized systematically for analysis and management.