Chapter 3 Summary

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Created by
wimrod

Cards (3)

    • Goodwill arising from a business combination is not amortized but tested for impairment at least annually.
    • In a reverse acquisition, the issuer of shares (the legal acquire) is the accounting acquiree.
    • The consideration transferred in a reverse acquisition is measured based on the number of equity interests the legal subsidiary (accounting acquirer) would have had to issue to give the owners of the legal parent (accounting acquiree) the same percentage of equity interest in the combined entity that results from the reverse acquisition.