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Basic Question 7 of 20
Which of the following statements is false?
B. The pooling method is acceptable under U.S. GAAP in certain circumstances for new mergers and acquisitions.
C. The acquisition method records assets and liabilities of the acquired company at fair market value as of the date of acquisition.
A. The acquisition method of accounting for business combinations is acceptable under both U.S. and IASB GAAP.
B. The pooling method is acceptable under U.S. GAAP in certain circumstances for new mergers and acquisitions.
C. The acquisition method records assets and liabilities of the acquired company at fair market value as of the date of acquisition.
User Contributed Comments 1
| User | Comment |
|---|---|
| treakj | The pooling is acceptable when the merge or acquisition occurred before 2001 (US GAAP). |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for 1) investments in financial assets, 2) investments in associates, 3) joint ventures, 4) business combinations, and 5) special purpose and variable interest entities;
distinguish between IFRS and US GAAP in their classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities;
analyze how different methods used to account for intercorporate investments affect financial statements and ratios.
CFA® 2025 Level II Curriculum, Volume 2, Module 10.