Exercise 14.4 ★ ★ IDENTIFYING THE ACQUIRER White Ltd has been negotiating with Cloud Ltd for several months, and agreements have fi nally been reached for the two companies to combine. In considering the accounting for the combined entities, management realises that, in applying IFRS 3, an acquirer must be identifi ed. However, there is debate among the accounting staff as to which entity is the acquirer. Required 1. What factors/indicators should management consider in determining which entity is the acquirer? 2. Why is it necessary to identify an acquirer? In particular, what differences in accounting would arise if White Ltd or Cloud Ltd were identifi ed as the acquirer