How shall an acquirer in a business combination account for the changes in fair value contingent consideration classified as equity instrument if the changes result from events after the acquisition date?

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: If in subsequent period, there is objective evidence of recovery in impairment previously recognized…

A: If previously Amortized debt measured by amortised cost has been recognized as debt in equity…

Q: Increases in the fair value of unexercised share options after the vesting period shall be…

A: Share options are the rights provided to the employees for purchasing or acquiring shares of the…

Q: IFRS requires companies to measure their financial assets at fair value except when based on:(a)…

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

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: an initial recognition an entity may make an irrevocable election to present in other comprehensive…

A: According to the accounting stantdard if an entity makes an investment and shows it in in other…

Q: hat is the proper treatment for noncash asset received from a stockholder? Group of answer choices…

A: Solution: When non cash asset received from a stockholders, its fair value should be debited to non…

Q: The fair value of a liability is defined as: a. the appraised value of the liability. b. the price…

A: The fair value of a liability is defined as the amount that would be paid when transferring a…

Q: Which among the sentences below is incorrect? A. An entity shall measure a current asset or…

A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…

Q: 37. When an entity reduces its interest in an investment in equity securities accounted for by the…

A: Introduction: If an investor company invests and acquires between 20 to 50% stake in the investee…

Q: f the value implied by the purchase price of an acquired company exceeds the fair values of…

A: Goodwill refers to an intangible form of asset which arises when a verified buyer acquires  or takes…

Q: All of the following are true of the effect of fair value accounting on the financial statements…

A: Fair value accounting: uses the Current Market Values as the basis for Recognizing Assets &…

Q: Under the corridor​ approach, a company only amortizes the net accumulated unamortized actuarial…

A: Introduction Corridor approach is a techniques used to reduce the amount of gain or losses, it…

Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…

A: Goodwill on acquisition = Purchase consideration paid - Fair value of net identifiable assets…

Q: In applying the equity method of accounting for an Equity Investment, profit on intercompany sales…

A: Explanation: Equity method: The equity method is an accounting method that is to be used to record…

Q: Which of the following is not considered in the determination of Total Assets after business…

A: In business combination , following are considered for determination of total assets : 1. Fair…

Q: When a debt investment at FVOCI is reclassified to amortized cost, the entity will a. Remeasure the…

A: The financial asset is to be transferred at Fair value from FVTOCI to amortized cost.

Q: In an equity-settled transaction, if the total compensation changes in the subsequent period, the…

A: Under share based payment, if during subsequent period, total compensation changes then that change…

Q: The property, plant and equipment account of Cuddle PH was revisited by its property officers. They…

A: Loss from Derecognition = Cost of the assets - Accumulated Depreciation

Q: what is the difference between marketable equity securities held as financial asset at fair value…

A: Financial assets are the intangible assets, which are used as investment asset by the investors.…

Q: 1. Which of the following may be measured subsequently at amortized cost? a. None of these b. A…

A: solution note: dear student as per the bartleby guideline we are required to solve the first…

Q: Fair Value Measurement Concept Question: What does it mean when fair value is paid to transfer a…

A: Fair Value: It is a measurement based on the current market situation. It is not specific to any…

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 is not a characteristic of a financial asset held for trading? a. It is…

A: Trading in financial instrument include assets such as stocks bonds mutual fund. the financial asset…

Q: The gain/loss related to a sale and leaseback transaction not recognized by the seller-lessee in its…

A: Rights retained .. The gain or the loss relating to a sale and leaseback transaction not recognized…

Q: Which is the proper way to report a contingent asset? a. As an asset b. No disclosure and no accrua…

A: As per IAS 37, Provisions, contingent liabilities and contingent assets. A contingent asset arise…

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: In the final settlement, of the contingent consideration, which of the following statements is…

A: I. If the contingent consideration is classified as equity, the amount shall be measured upon…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination…

A: Introduction:- The merger and purchase of several smaller enterprises into a few considerably bigger…

Q: Where non-current assets are held for sale, they are required to be measured using: the…

A: Non-current assets are held for sale - Non Current Assets are part of the assets in the balance…

Q: Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022.…

A: FICA (Federal Insurance Contribution Act) taxes refer to the law that allows employers to withhold a…

Q: Which of the following accounting treatments for costs related to business combination is incorrect?…

A: The cost related to business corporation, also known as pre incorporation expenditure, are treated…

Q: If the equity-settled transaction (share option) is granted early during the vesting period, the…

A: If stock option is granted early during the vesting period, then the compensation that would have…

Q: If the acquirer’s interest in the net fair value of the identifiable assets, liabilities and…

A: The goodwill should be reassessed at the time of acquisition to check its accuracy. If any negative…

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: NU Corporation declares and distributes dividend that is a result of current earnings. How will the…

A: Solution Note : As per the Q&A guideline we are required to answer the first question only…

Q: In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of…

A: Accretion / Dilution Analysis of Acquisition Acquisition of the companies means the taken over the…

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: In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of…

A: Accretion / Dilution Analysis of Acquisition Acquisition of the companies means the taken over the…

Q: Which of the following statements is/are true about contingent consideration under the revised PFRS…

A: solution concept as pe the provision of PFRS 3 business combinations contingent consideration can be…

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.