Reference no: EM132950884

Problem 1: What is the measurement of the consideration transferred or given up in a business combination?

a) Acquisition date-book value
b) Acquisition date-face value
c) Acquisition date-carrying value
d) Acquisition date-fair values

Problem 2: If the aggregate of the (a)consideration transferred measured in accordance with IFRS 3, which generally requires acquisition-date fair value; (b) the amount of any non-controlling interest in the acquiree measured in accordance with IFRS 3; and (c) in a business combination achieved in stages, the acquisition date-fair value of the acquirer's previously held equity interest in the acquiree, exceeds the fair value of net assets of the acquiree, the difference shall be treated by the acquirer as

a) Negative goodwill to be subject to amortization.
b) Impairment loss to be recorded at acquisition date Consolidated Income Statement.
c) Goodwill from business combination classified as noncurrent asset in the Consolidated Statement of Financial Position which will not be amortized but will be subject to annual impairment test.
d) Gain on bargain purchase to be recognized as acquisition date Consolidated Statement of Comprehensive Income as part of profit or loss attributable to parent's shareholders only.