When Performing the Fair Value Adjustment Process, Which of the Following

question 38

Multiple Choice

When performing the fair value adjustment process, which of the following is true?

• A)The deferred income tax is reversed on the same basis as the fair value adjustment is written off
• B)The deferred income tax recognized during the acquisition analysis always remains the same.
• C)The fair value adjustments are initially recorded on the statement of financial position and are never written off
• D)The fair value adjustments are initially recorded on the statement of financial position and are always written off through comprehensive income over a period of 5 years.

---

Definitions:

Stay-at-Home Mom

A mother who chooses to not work outside the home to devote time to domestic responsibilities and child-rearing.

Working

Engaged in a job or employment for compensation, contributing to the economy or personal income.

Stay-at-Home Dad

A father who chooses to stay at home to care for his children and manage household tasks while his partner works outside the home for income.

Competitive Breadwinner

An individual who strives to be the primary or sole financial provider for their family, often driven by societal expectations or personal ambition.