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: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

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

A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…

Q: Which of the following statements about a business combination is valid?

A: Answer: b.The acquirer should recognize the acquiree’s contingent liabilities if certain conditions…

Q: In a transaction accounted for using the acquisition method where consideration transferred is less…

A: The acquisition method is used when a business is taken over by another business.

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

A: Costs associated to the establishment of the newly created corporation, also known as…

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

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

Q: PRO Which of the 1. Financial assets in the form of investments in subsidiaries, associates and…

A: PAS 32 covers Contracts for delivery or receipt of commodity and other non financial assets that can…

Q: Which of the following statements concerning the different types of hedging transactions is…

A: The Correct Answer is Option "C"  i.e. In hedging transaction which is undesignated, unrealized…

Q: Which of the following would NOT be included in the acquisition cost?

A: The acquistion cost is the total cost incurred in the acuistion of…

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 regarding the accounting for business combinations is false?…

A: Although goodwill is the difference between the consideration transferred by the acquirer to the…

Q: When an investment ceases to be an associate, the fair value of the investment at the date when it…

A: Investment is the amount saved by the investor in order to earn regular income as well as get the…

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: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

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

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

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: In a business combination achieved in stages, if the acquisition date fair value of the net of the…

A: It is a case wherein the acquired hold some shares which does not give them right to control but…

Q: A. For an asset, derecognition normally occurs when the entity loses control of all or part of the…

A: Derecognition means derecognizing the assets or liability where some predefined conditions met.

Q: A contingent liability assumed in a business combination: a. Is not accounted for by the acquirer…

A: Contingent liability: The contingent liability is not treated as a liability of the company on the…

Q: Statement 1: If the financial asset is measured at fair value through profit or loss, transaction…

A: Lets understand the basics. Financial asset can be recognized in the books of accounts in the three…

Q: True or False Pls indicate if the statements are True or False. 1. All allocated excess/purchase…

A: 1.  Ans -  True As all allocated excess/Purchase differentials are Amortized and it is allocated…

Q: If an entity has elected to use the fair value option for a financial liability; a. It is measured…

A: Liabilities: Liabilities are the obligations of an organization that an organization must pay in…

Q: If a company has elected the fair value option, where are gains and losses resulting from adjusting…

A: The question is asking about the reporting of unrealized gains and losses when a company has chosen…

Q: How should negative goodwill be shown on the consolidated financial statements of the acquirer?…

A: Introduction:- Negative goodwill arises, where one company (Acquirer company) purchases or acquires…

Q: Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer…

A: Introduction:- As per IFRS 3 deals Business Combinations. Business combinations means acquirer…

Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…

A: When a company follows equity method when it has significant influence over such company.The…

Q: The “excess of the acquirer’s interest in the net fair value of acquiree’s identifiable assets,…

A: The parent entity acquires control in the subsidiary entity by acquiring their net assets in…

Q: In an acquisition where control is achieved and the fair value of the consideration transferred is…

A: Acquisition:-When assets of one company acquired by another company with some holding rights.

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.