CERTYNEX IFRS ACADEMY

In a reverse acquisition, how is the consideration transferred by the accounting acquirer measured?

At the fair value of the securities actually issued by the legal acquirer at the acquisition date, which are the securities actually delivered.

At the carrying amount of the legal acquirer's net assets in its own accounts before the transaction.

At the fair value of the number of securities that the legal subsidiary would have had to issue to give the owners of the legal acquirer the same interest in the combined entity.

At the nominal value of the legal acquirer's securities held by its former owners after the transaction.