In group reorganizations, common control transactions are accounted for using which accounting? a) Fair value accounting b) Book value accounting c) Mixed value accounting d) Market value accounting
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- Which consolidation method should be used in preparing consolidated financial statements in accordance with IFRS? A. Proportionate consolidation method.B. Either identifiable net assets or fair value enterprise method.C. New entity method.D. Parent company method.What accounting is made of the professional fees incurred during a reorganization?The identifiable assets acquired and liabilities assumed in a business combination are generally measured at: a. Acquisition-date fair values b. Previous carrying amounts c. Fair value less cost to sell d. Cost
- Define the following terms: (1) restructuring, (2) extension,(3) composition, (4) assignment, and (5) assignee (trustee).Discuss the meaning of consolidated financial statements.Revenue Recognition Discuss transition methods of this new revenue standard, i.e., how an entity should apply this new standard for the first time. Which transition method do users/investors of financial statements likely prefer? Why? Which transition method do preparers of financial statements likely prefer? Why?
- Discuss the significance of the following assumptions in the preparation of an entity’s financial statements: Entity assumption Accrual basis assumption Going concern assumption Period assumptionDefine Consolidated financial statements.Explain how the revenue recognition principle supports the elimination of intercompany transactions when preparing consolidated financial statements