Both statements are correct concerning business combinations:

I. All business combinations shall be accounted for by applying the purchase method,
as per the International Financial Reporting Standards (IFRS) and US Generally
Accepted Accounting Principles (US GAAP). This means that the acquirer is required
to recognize and measure the assets acquired, liabilities assumed, and any non-
controlling interest in the acquiree, at their fair values at the acquisition date.
II. The purchase method views a business combination from the perspective of the
combining entity that is identified as the acquirer. In other words, the acquirer is the
entity that obtains control of the acquiree and is responsible for the business
combination. As per the purchase method, the acquirer measures the fair value of the
net assets acquired, including any goodwill or bargain purchase gain arising from the
transaction.
Both statements are correct concerning business combinations:
I. All business combinations shall be accounted for by applying the purchase method,
as per the International Financial Reporting Standards (IFRS) and US Generally
Accepted Accounting Principles (US GAAP). This means that the acquirer is required
to recognize and measure the assets acquired, liabilities assumed, and any non-
controlling interest in the acquiree, at their fair values at the acquisition date.
II. The purchase method views a business combination from the perspective of the
combining entity that is identified as the acquirer. In other words, the acquirer is the
entity that obtains control of the acquiree and is responsible for the business
combination. As per the purchase method, the acquirer measures the fair value of the
net assets acquired, including any goodwill or bargain purchase gain arising from the
transaction.
Both statements are correct concerning business combinations:
I. All business combinations shall be accounted for by applying the purchase method,
as per the International Financial Reporting Standards (IFRS) and US Generally
Accepted Accounting Principles (US GAAP). This means that the acquirer is required
to recognize and measure the assets acquired, liabilities assumed, and any non-
controlling interest in the acquiree, at their fair values at the acquisition date.
II. The purchase method views a business combination from the perspective of the
combining entity that is identified as the acquirer. In other words, the acquirer is the
entity that obtains control of the acquiree and is responsible for the business
combination. As per the purchase method, the acquirer measures the fair value of the
net assets acquired, including any goodwill or bargain purchase gain arising from the
transaction.
Both statements are correct concerning business combinations:
I. All business combinations shall be accounted for by applying the purchase method,
as per the International Financial Reporting Standards (IFRS) and US Generally
Accepted Accounting Principles (US GAAP). This means that the acquirer is required
to recognize and measure the assets acquired, liabilities assumed, and any non-
controlling interest in the acquiree, at their fair values at the acquisition date.
II. The purchase method views a business combination from the perspective of the
combining entity that is identified as the acquirer. In other words, the acquirer is the
entity that obtains control of the acquiree and is responsible for the business
combination. As per the purchase method, the acquirer measures the fair value of the
net assets acquired, including any goodwill or bargain purchase gain arising from the
transaction.