How are direct combination costs, contingent consideration, and a bargain purchase reflected in recording an acquisition transaction?
What will be an ideal response?
The acquisition method embraces a fair value concept as measured by the fair value of consideration transferred. (1) Direct combination costs are expensed as incurred; (2) Contingent consideration obligations are recognized at their present value of the potential obligation as part of the acquisition consideration transferred; (3) When a bargain purchase occurs, the acquirer measures and recognizes the fair values of each of the assets acquired and liabilities assumed at the date of the combination, and as a result a gain on the bargain purchase is recognized at the acquisition date.
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Islamic law, the legal system influenced by the religion of Islam, is referred to as shari'a
a. True b. False Indicate whether the statement is true or false