The Fair Value of Assets and Liabilities of the Acquired

question 26

Multiple Choice

The fair value of assets and liabilities of the acquired entity is to be reflected in the financial statements of the combined entity. When the acquisition takes place over a period of time rather than all at once, at what time is the fair value of the assets and liabilities of the acquired entity determined under SFAS 141R?

• A) the date the interest in the acquiree was acquired.
• B) the date the acquirer obtains control of the acquiree
• C) the date of acquisition of the largest portion of the interest in the acquiree.
• D) the date of the financial statements.

---

Definitions:

Representative Sample

A subset of a population that accurately reflects the members of the entire population, used in statistical analysis.

Paraphrasing

The act of rewording or rephrasing text or speech to achieve clearer understanding, often to simplify or clarify the original message.

Summarizing

The act of condensing a larger piece of text or information into a concise summary, highlighting the main points or conclusions.

Quoting

The act of repeating or copying out words from a text or speech written or spoken by another person, often with acknowledgment of the source.