Reference no: EM132950865

Problem 1: Applying acquisition method for business combination requires the following steps except:

a) Using equity method
b) Recognizing and measuring goodwill or a gain from bargain purchase.
c) Determining the acquisition date.
d) Recognizing and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree.

Problem 1: Under IFRS 3, what is the treatment of acquisition related costs in a business combination?

a) It shall be debited to share premium.
b) It shall be capitalized as part of consideration given up in computation of goodwill or gain on bargain purchase.
c) It shall be charged directly to retained earnings.
d) It shall be expensed as incurred and presented as part of profit or loss.

Problem 1: For each business combination, the acquirer shall measure at the acquisition date components of non-controlling interest in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation at either

a) The present ownership instruments' proportionate share in the recognized amounts of the acquiree's identifiable assets.
b) Fair value.
c) Neither A or B
d) Either A or B