An acquiree is one or more businesses controlled by an acquirer in a business combination.
For example, company A acquires 90% of the interest of entity B.
In this case, entity A is known as the acquired company, and entity B is the acquiree entity.
In this way, the acquiring company must recognize the assets and liabilities at fair value of the acquiree entity.
After the business combination, it will be necessary to carry out a consolidation process of financial statements.
The acquiree entity will be known as a subsidiary in such a case.
An acquiree does not necessarily have to be an entity; it can be, for example, a company business line.
The important thing, in this case, is that the acquiree company meets a business definition.
In the context of IFRS 3, a business is an integrated set of activities and assets that are directed and managed to obtain profitability or lower costs for investors.
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