What is the primary accounting requirement for an acquirer in a merger under IFRS?

In a merger under IFRS, the primary accounting requirement for the acquirer is to recognize identifiable assets and liabilities at fair value. This process is established under IFRS 3, "Business Combinations," which provides guidance on how to account for a business combination.

The acquirer must identify and measure the fair value of the acquired assets and assumed liabilities on the acquisition date. Recognizing identifiable assets and liabilities at fair value is crucial because it reflects the current market conditions and the economic realities of the acquisition. This ensures that the financial statements provide a true and fair view of the combined entity's financial position directly following the merger.

In addition to recognizing identifiable assets and liabilities, the acquirer also calculates goodwill, which is the excess of the consideration transferred over the fair value of the net identifiable assets acquired. However, the primary accounting requirement focuses on the initial recognition of those identifiable assets and liabilities, making option B the correct statement in this context.

The other options, while related to elements of the acquisition accounting process, do not represent the primary requirement. Recognizing goodwill specifically at fair value does occur, but it is a subsequent step after the recognition of identifiable assets and liabilities. Eliminating all previous assets and liabilities may not accurately reflect the nature of