Recently Revised Accounting Standards for Mergers and Acquisitions of Not-For-Profit

question 15

Multiple Choice

Recently revised accounting standards for mergers and acquisitions of not-for-profit organizations:

• A)​require the recognition of goodwill for all acquisitions.
• B)​allows for a different methods of accounting for mergers than for acquisitions.
• C)​stipulate a new not-for-profit entity is created whenever there is a combination of two organizations.
• D)​allow the purchase method of accounting in certain situations.

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Definitions:

Antitrust Law

Legislation designed to promote competition and regulate and prevent monopolies or other practices that restrain trade.

Legal Cartel Theory

A concept that explores the legality and economic implications of a group of firms controlling the market by regulating prices and output like a cartel.

Occupational Licensing

The laws of state or local governments that require that a worker satisfy certain specified requirements and obtain a license from a licensing board before engaging in a particular occupation.

Antitrust Legislation

Laws and regulations designed to promote competition and prevent monopolies or oligopolies by regulating anticompetitive practices among companies.