Why this is mistaken
Legal form is evidence, not a universal answer. Apply the control model and review voting rights after the deal, governing body, senior management, relative size, consideration form, and any VIE factors. The correction identifies the decisive and contrary indicators and preserves a specialist handoff when facts conflict. The result controls whose history continues and which net assets receive acquisition-date measurement.
Where to watch
When this mistake may appear
- The company that issued shares must be the acquirer.
Check your work
Your work may contain this mistake if:
- Relies on legal form while omitting control, voting rights, board, management, size, consideration, or VIE evidence.