In a step acquisition, which of the following statements is false? Income from s

Question

In a step acquisition, which of the following statements is false? Income from subsidiary is computed by applying a partial year for a new purchase acquired during the year. O The acquisition method views a step acquisition essentially the sane as a single step acquisition O Preacquisition earnings are not included in the consolidated income statement. O Obtaining control through a step acquisition is a significant remeasurement event. O Income from subsidiary is computed for the entire year for a new purchase acquired during the year.

Explanation / Answer

Ans is - Option E - Income from subsidiary is computed for the entire year for a new purchase acquired during the year.

Step acqusition is basically happens when a company has a non controlling interest in a company.Now in a particular situation , he gets a option to buy entire shares of the company and get full control of the company.

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