In Reference to the FASB Disclosure Requirements About a Business

question 27

Multiple Choice

In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs,which of the following is correct?

• A)Firms are not required to disclose the name of the acquired company.
• B)Firms are not required to disclose the business purpose for a combination.
• C)Firms are required to disclose the nature,terms and fair value of consideration transferred in a business combination.
• D)All of the above are correct.

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Definitions:

Common Enterprise

A joint venture or project where parties work together towards a common goal, sharing profits and risks.

Civil Suit

A legal action by one party against another in a civil court, typically involving disputes over rights, contracts, or damages, as opposed to criminal matters.

Misleading Statement

Any declaration or representation that has the potential to deceive or misinform others, especially in contexts like advertising or public statements.

Corporate Securities

Financial instruments issued by corporations, including stocks and bonds, representing ownership or debt obligations.