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From course:

Accounting for Business Combinations

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Question:

T/F: The acquirer is not obliged to replace the acquiree's awards if the acquiree or the employees have the ability to enforce replacement, either all or a portion of the market-based measure of the acquirer's replacement awards is included in measuring consideration transferred in the business combination

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Answer:

False, the acquirer is obliged to replace the acquiree's awards if the acquiree or the employees have the ability to enforce replacement, either all or a portion of the market-based measure of the acquirer's replacement awards is included in measuring consideration transferred in the business combination


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