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When accounting for business combinations how would you decide which entity was the acquiring entity?

When accounting for business combinations how would you decide which entity was the acquiring entity?

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During the business combination, Acquiring entity is that party which owns the ownership of the acquired entity. Acquiring entity owns the voting right of the acquired entity and dominates the management of the acquired entity. It has the right to elect BoDs and other senior officials of the acquired entity. Acquiring entity pays premium over the fair value of the net assets and takes all liabilities. All in a nutshell, acquiring entity is the parent company of the acquired entity. So in accounting of business combination, acquiring entity pays premium over fair value of assets and acquires the control over the other party ( acquired entity) . Usually the acquiring entity has a larger financial strength than the acquired entity.

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