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CS Professional · Corporate Restructuring, Valuation and Insolvency · Accounting in Corporate Restructuring: Concept and Accounting Treatment

Under Ind AS 103, the acquirer must determine the acquisition date for a business combination. Which is the acquisition date?

The acquisition date is the date the acquirer obtains control of the acquiree. Ind AS 103 uses this date to measure consideration, identifiable assets and liabilities at fair value, and goodwill. Board approval, first payment or year-end do not by themselves determine the acquisition date.

  1. AThe date the acquirer's board approves the deal
  2. BThe date the acquirer obtains control of the acquireeCorrect
  3. CThe date of the first payment of consideration
  4. DThe last day of the acquirer's financial year

Explanation

Ind AS 103 defines the acquisition date as the date on which the acquirer obtains control of the acquiree. This is generally the closing date when consideration is transferred and assets and liabilities are acquired, though it can differ if control passes earlier or later by agreement.

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