Which of the Following Statements Regarding Step Acquisitions Is FALSE

question 43

Multiple Choice

Which of the following statements regarding step acquisitions is FALSE?

• A)An acquirer can obtain its controlling interest in the acquiree by acquiring further shares and thereby adding to its previously held equity interest.
• B)There may be a number of step purchases of shares in the acquiree prior to the obtaining of control.
• C)The acquirer will recognize an investment in the acquiree with each step acquisition being measured at book value.
• D)In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any, in profit or loss.

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Feedback Response

Feedback response refers to the reaction or changes made by individuals or systems upon receiving feedback, aiming to improve or adjust behavior, performance, or processes.

Negative Wording

The use of negatively phrased statements or questions that can impact the response or outcome in surveys and assessments.

Simplicity

The characteristic of being easy to understand or uncomplicated in nature.