Acquisition date for a non current asset or a

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acquisition date for a non-current asset or a disposal group is calculated and classified as held for sale. Further, to understand the various factor of business combination from the point of view of acquiree and acquirer in relation to the acquisition date, the Measurement Period, is also considered important. The situation of the measurement period arises when the recording of a transaction is not completed by the end of a period of reporting when a business combination is formed. The same is considered to be important from the aspect of the business combination to report activity in its financial statement on provisional amount basis for transactions that remain incomplete after the accounting. So, to consider the measurement period is important because the same is considered to record the adjustment on a retrospective basis on the acquisition date. The process is followed to record the true value of the transaction that is being existed on the date of acquisition. The same is to be noted that in any case, the period of measurement cannot be more than a year from the date of acquisition. Now, we are clearly in a state of position to understand the need for deciding the date of acquisition for the acquirer and acquiree. As the same is the target point of acquisition for the target company (Australian Accounting Standard Board, 2015). More we talk about the acquisition date, the more we are in a position to clarify the need for deciding the measurement period from the acquisition date to lock the financial on fair value for tax purpose and accounting. Lastly, the understanding of the facts for importance of acquisition date broadly opens the question which is being answered in a relatable manner such as why the acquisition date is considered to be important, why it can’t be any date, why the same is to be written on agreement, why acquirer and acquiree must agree on the same date, why IFRS 3/AASB 3, preferably starts with date of acquisition? So, the reason behind deciding the acquisition date is very clear that there are so many points that play a vital role in deciding the factors important for a business combination. Out of which, the first and foremost factor which is ultimately becoming the basis of deciding the fair value of purchase consideration to be paid, determination of goodwill, non-controlling interest and value of the asset acquired, liability assumed is Acquisition Date. Further, the value of Contingent Liability is also calculated on the acquisition date. It is a liability as a result of a past event, an obligation is created for a future outflow of embodying economic benefits. Therefore, the same is valued at fair value only if the same can be measured reliably to record the transaction in the books of business combination Now, the important point is what about dividends? The treatment of pre- and post-acquisition dividend differs.
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