Why acquisition of preference share is not considered

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MFRS 3 Business Combinations defines a business combination as a transaction or other event in which an acquirer obtains control of one or more businesses. This will happen when the holding company owns the ordinary shares of the subsidiary company.

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Question 1: Explain why acquisition of preference share and/or debenture are/is not considered when determining the control.

Reference no: EM132581876

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