Disclosure of information about the purchase price allocation and pro forma sales and earnings
BC403 The 1999 Exposure Draft would have required tabular disclosure of the fair values allocated to each of the major classes of assets and liabilities presented in the statement of financial position and the acquiree’s related carrying amounts immediately before its acquisition. That exposure draft also proposed eliminating the pro forma sales and earnings disclosures required by APB Opinion 16.
BC404 Approximately half of the respondents who commented on the proposed requirement to disclose information about the purchase price allocation agreed that the information would be useful in assessing post‑acquisition earnings and cash flows of the acquirer. However, some respondents questioned the usefulness of the proposed disclosure of information about the acquiree’s carrying amounts of assets acquired and liabilities assumed, particularly if the financial statements of the acquiree were
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