How shall the acquirer account for previously held equity

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Problem 1: How shall the acquirer account for its previously held equity interest in the acquiree upon obtaining control of the acquiree or how shall an acquirer account for a business combination achieved in stages a.k.a. step acquisition?

a) The acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit/loss.
b) The acquirer shall treat the transaction as change in accounting policy to be treated retrospectively as acquisition date.
c) The acquirer shall not include the previously held equity interest in the computation of goodwill or gain on bargain purchase arising from business combination.
d) The acquirer shall account the transaction as prior period error to be treated by retroactive restatement.

Reference no: EM132950861

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