alleryStart learning →An acquirer's own pre-acquisition tax asset change from the combination is:
ARecognised, not in goodwill
BAdded into goodwill
CIgnored for this year
DTaken to a reserve
Answer & Solution
Correct answer: A. Recognised, not in goodwill
The acquirer recognises the change in the period of the combination but excludes it from the goodwill or bargain purchase gain.
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