how has FASB clearly designated a fair value approach with regards to business combinations? Does this tendency extend into other areas of accounting? How do the international financial accounting concepts align with this shift? Solution Answer: In case of business combinations, the acquirer will measure and recognize the fair value on the acquisition date, The acquirer has to measure and recognize the fair value of the acquiree by recognizing on the data of acquisition. Further, some assets and liabilities shall be measured and recognized in accordance at their acquisition-date fair values, with only a few exceptions. Current financial reporting standards require the acquisition method to account for business combinations. Applying the acquisition method typically involves recognizing and measuring • the consideration transferred for the acquired business and any noncontrolling interest. • the separately identified assets acquired and liabilities assumed. • goodwill, or a gain from a bargain purchase. Fair value is the measurement attribute used to recognize these and other aspects of a business combination. Therefore, prior to examining specific applications of the acquisition method, we present a brief discussion of the fair-value concept as applied to business combinations. .

1. how has FASB clearly designated a fair value approach with regards to business combinations?
Does this tendency extend into other areas of accounting? How do the international financial
accounting concepts align with this shift?
Solution
Answer: In case of business combinations, the acquirer will measure and recognize the fair
value on the acquisition date, The acquirer has to measure and recognize the fair value of the
acquiree by recognizing on the data of acquisition. Further, some assets and liabilities shall be
measured and recognized in accordance at their acquisition-date fair values, with only a few
exceptions.
Current financial reporting standards require the acquisition method to account for
business combinations. Applying the acquisition method typically involves recognizing
and measuring
• the consideration transferred for the acquired business and any noncontrolling interest.
• the separately identified assets acquired and liabilities assumed.
• goodwill, or a gain from a bargain purchase.
Fair value is the measurement attribute used to recognize these and other aspects of a
business combination. Therefore, prior to examining specific applications of the acquisition
method, we present a brief discussion of the fair-value concept as applied to business
combinations.