In operating leases where the acquiree is the lessee
-False
Conglomerate is a business combination of two or more entities with dissimilar
business
-True
Pertains to any interest held by the acquirer
-Previously held equity interest in the acquiree
Merger occurs when two or more companies consolidate into a single entity
-True
Identifiable assets acquired and liabilities assumed
-Fair Value
The consideration transferred in a business combination includes those that are
transferred
-True
Business Combination is an integrated set of activities and assets
-True
The business combination results in consideration in the forms of:
-Cash
Other assets
Ordinary or preference equity instruments
A business or subsidiary of the acquirer
Contingent consideration
The company that obtains control over the other
- Acquirer or the acquiring/surviving company
Merger occurs when two or more
-True
Control is the power to govern the financial and operating policies
-True
Control happens only when the acquirer holds more than 50%
