CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following statements is false?

A. The acquisition method of accounting for business combinations is acceptable under both U.S. and IASB GAAP.
B. The pooling method is acceptable under U.S. GAAP in certain circumstances for new mergers and acquisitions.
C. The acquisition method records assets and liabilities of the acquired company at fair market value as of the date of acquisition.
Correct Answer: B

The pooling method is no longer allowed.

User Contributed Comments 1

User Comment
treakj The pooling is acceptable when the merge or acquisition occurred before 2001 (US GAAP).
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