At Acquisition Date Which of the Following Is Not Required

question 31

Multiple Choice

At acquisition date which of the following is not required to be recognised by the acquirer?

• A) Liabilities assumed.
• B) non-controlling interest in the acquiree.
• C) goodwill separately from the identified assets acquired
• D) Retained earnings of the acquiree.

---

Definitions:

Sharpe Measure

A method to evaluate the risk-adjusted return of an investment, comparing portfolio excess return to the standard deviation of the portfolio.

Excess Returns

The return on an investment above the return expected from risk-free investments or the market's benchmark.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, often exemplified by government bonds.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution, indicating the potential for extreme outcomes.