Significance of Acquisition Date in Acquisition Method

Very Easy Intercorporate Investments Acquisition Method

In the context of accounting for intercorporate investments, specifically under the Acquisition Method, how is the acquisition date significant to the recognition of assets acquired and liabilities assumed?

The acquisition date is when the purchase price is finalized.

The acquisition date is the point at which the acquirer obtains control over the acquiree.

The acquisition date is when the acquirer begins to consolidate the financial statements of the acquiree.

Hint

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