a business combination, an acquirer's interest in the fair value of the net assets acquired exceeds the consideration transferred in the combination. Under PFRS 3 Business Combinations, the acquirer should A. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in other comprehensive income B. recognize the excess immediately in other comprehensive income C. recognize the excess immediately in profit or loss D. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in profit or loss

Q: If the amount paid by an investor (parent) is less than the proportional total of the estimated fair…

A: b. Gain from bargain purchase in the income statement of the investor. In extremely rare…

Q: Which of the following statements is true regarding the acquisition method of accounting for a…

A: The assets and liabilities of the acquired company are recognised at their fair values at the…

Q: S1: In the financial settlement of a contingent consideration classified as financial liability, the…

A: A business combination occurs when an entity acquires control over an organization. It can also be…

Q: What is the proper treatment for noncash asset received from a non-stockholder? Group of answer…

A: Accounting entry to be made for noncash asset received from a non-stockholder: Debit Noncash Assets…

Q: During an acquisition, when should intangible assets NOT be recognized apart from Goodwill? A. The…

A: The correct answer is Option (d)The assets have been accounted for by the subsidiary but have no…

Q: Statement 1: In the financial settlement of a contingent consideration classified as financial…

A: The question is related to which Statement is correct.

Q: If the acquirer's interest in the net fair value of the identifiable asset liabilities exceeds the…

A: In extremely rare circumstances, an acquirer will make a bargain purchase in a business combination…

Q: In paragraph 44 of Statement of Financial Accounting Standards No. 141, “Business Combinations,” the…

A: In paragraph 44 of Statement of Financial Accounting Standards No. 141, the FASB directed that any…

Q: The consolidated balance of fixed assets will be affected by working paper entries involving all of…

A:

Q: Statement 1:  All allocated excess/purchase differentials are amortized. Statement 2: The worksheet…

A: consolidation that is subsequent to the date of acquisition the consolidation procedures subsequent…

Q: The consolidated balance of fixed assets will be affected by working paper entries involving all of…

A: Consolidate Balance- A consolidated balance sheet presents the fiscal position of an affiliated…

Q: A purchaser of a business will generally prefer which of the following? An asset purchase to…

A: "Since you have asked multiple questions, we will answer first question for you. If you want other…

Q: When the price paid to acquire another firm is lower than the fair value of its identifiable net…

A: When the price paid to acquire a business is lower than the fair value of its identifiable net…

Q: Which of the following statements is incorrect? For each business combination, one of the combining…

A: Business: A business is an organization entirely made for earning profits or for fulfilling social…

Q: Statement I:  In a business combination achieved in stages, the resulting gain or loss from the…

A: The question is related to IFRS 3 Business Combination. The para 42 of IFRS 3 details with business…

Q: Statement I:  During the measurement period, the acquirer shall prospectively adjust the provisional…

A: During the measurement period the acquirer shall retrospectively adjust the provisional amounts…

Q: f non-controlling interest plus carrying value of previously held interest in the acquiree plus…

A: Business combination: Business combination refers to the process in which one business obtains…

Q: hen a firm disposes of a capital asset, the difference between the net book value of the asset and…

A: Basic Accounting Concept Capital gain or loss on transfer of assets

Q: Which of the following statements are correct? I. Borrowing costs incurred in the acquisition,…

A: Answer is Option c) Both I and II

Q: Which of the following is not an application of the acquisition method? a. Measuring the…

A: Option a is correct.

Q: Which of the following statements is true about conting consideration under the revised PFRS 3? O…

A: Contingent consideration is defined as the obligation or liability of the buyer or acquirer to…

Q: Which of the following statements applies to the recognition of property, plant, and equipment…

A: The property plant and equipment are the long-term assets that help in generating revenues. The IAS…

Q: (TCO B) How are accounting for direct costs, indirect costs, and issuance costs reflected under the…

A: According to IFRS 3 the acquisition method is also called the purchase method which is used for all…

Q: Which of the following is included in the computation of the consolidated balance of assets at the…

A: Goodwill as a result of the business combination

Q: Describe the presentation of the consolidated balance sheet and income statement indicating a) The…

A: Presentation of Balance Sheet and Income Statement is very crucial aspect in industry to compare and…

Q: How is a goodwill in a business combination measured according to PFRS 3? Consideration transferred…

A: As per PFRS 3    Goodwill is an intangible asset representing the future value of economic benefits…

Q: In a business combination, an acquirer's interest in the fair value of the net assets acquired…

A: It should be recognised as capital reserve in the statement of comprehensive income... The…

Q: Under the Acquisition Method, regardless of the purchase price, identifiable net assets of the…

A: In  case one company overtake the assets and liabilities of another company , then accounting for…

Q: loses significant influence over the associate, the balance of the investment in the associate is…

A: When the company has significant influence over the associate, then equity method should be used for…

Q: The unamortized excess account is a. the excess purchase cost that is attributable to goodwill. b.…

A: The unamortized excess account seems to be the account that is utilized to allocate the amount of…

Q: Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets…

A: As per IFRS 3 Acquisition Method shall be used for accounting businees combination. As per the IFRS…

Q: for the following intercompany transaction  state the principle to be used in accounting for…

A: Intercompany Gains means profit arising from transactions like transfer of inventory, sale of assets…

Q: What is the requirement with respect to the allocation of the cost of a business acquisition?  a.…

A: Acquisition method is used in all types of business acquisition.

Q: The acquirer shall recognize separately the acquiree's identifiable assets, liabilities and…

A: As per the provision in IAS37, contingent liability is a liability which depends on happening of…

Q: Which statement is true in relation to business combination achieved in stages? a. The pre-existing…

A: A business combination achieved in stages is called as a step acquisition

Q: In paragraph 44 of Statement of Financial Accounting Standards No. 141, “Business Combinations,” the…

A: Accounting for business combinations involves determining the fair value of the assets and…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.