During the measurement period, what type of information can lead to retrospective adjustments?

During the measurement period, information about facts that existed at the acquisition date is crucial for making retrospective adjustments. This type of information allows for a more accurate estimation of the fair value of the acquired assets and liabilities, as it reflects the conditions and circumstances that were present at the time of the acquisition. By focusing on the specifics that were true at that date—such as existing contracts, regulatory conditions, and other factual circumstances—an appraiser can adjust the fair values as necessary to align them with actual conditions observed during that time frame.

This process is essential in ensuring that the financial statements reflect the true economic position of the business being valued, as it gives context to how and why certain values have been assigned. Applying retrospective adjustments based on accurate historical facts supports compliance with accounting standards that require recognition of past conditions rather than relying solely on current or projected data.

In contrast, information about future projections and potential changes, while important for forward-looking assessments, does not pertain to adjustments for events that have already occurred. General market conditions can be variable and might not directly impact the specific facts relevant to the acquisition date. Historical sales data, while useful for understanding trends, also may not provide the specific factual context needed for adjustments related to a particular acquisition event.