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.

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Definitions:

Organic Structure

An organizational configuration that is flexible, adaptive, and decentralized, designed to enable rapid response to changes.

Organizational Strategy

A plan of action designed to achieve long-term or overall goals and objectives of an organization.

Structure

The arrangement of and relations between the parts or elements of something complex.

Standardizing Work

The process of developing and implementing uniform procedures for tasks to increase efficiency and consistency.