Question

For many technology and pharmaceutical firms… A. a large portion of their value to an acquirer...

For many technology and pharmaceutical firms…

A. a large portion of their value to an acquirer might relate to in-process research and development (IPR&D).

B. in-process research and development (IPR&D) acquired in a business combination that meets the separability criterion as an asset is recognized and measured initially at fair value.

C. the firm that developed the in-process research and development (IPR&D) expensed the costs as they were incurred.

D. all of the above

E. none of the above

Homework Answers

Answer #1

Correct answer is D ( i.e. All of the above ).

Explanation:

In respect of Technology and pharmaceutical firms usally a large portion of their value to an acquirer might relate to in-process research and development (IPR&D). Their in-process research and development (IPR&D) acquired in a business combination that meets the separability criterion as an asset is recognized and measured initially at fair value. Firm that developed the in-process research and development (IPR&D) expensed the costs as they were incurred.

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