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:

Neutral Third Party

An impartial person or entity involved in a conflict or negotiation to facilitate a resolution without bias.

Nonbinding Opinion

A nonbinding opinion is an advisory judgment or advice offered by an authority that does not have compulsory legal force.

Article III

Refers to the third article of the United States Constitution, which establishes the judicial branch of the federal government.

United States Constitution

The foundational legal document of the United States, outlining the framework of government, rights of citizens, and separation of powers.