The acquisition-related costs in a business combination to be expensed immediately include cost of issuing debt securities. S2: In a business combination any “gain on bargain purchase” shall be recognized in other comprehensive income.

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: 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: Under IFRS, the amount of capital received in excess of par value would be credited to: a.…

A:

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: 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: A consolidated income statement must clearly separate income attributable to the controlling and…

A: Consolidation is the process of combining financial statements of two companies, in which one is…

Q: Statement 1: It is not always necessary to identify both fair value less cost to sell and value in…

A: Impairment loss: Impairment is the result of a decrease in the fair market value of an asset than…

Q: Gross selling price includes: I. the amount of the seller's debt assumed by the buyer. II. the fair…

A: Selling price means the rate at which the goods are sold or services are provided by the…

Q: Choose the correct answer: An investor using the equity method may have an acquisition price in…

A: Solution Concept When  acquisition price is greater than share in the net assets at carrying value…

Q: oncept of capital maintenan -defines the level of profitabil

A: Capital maintenance: It is an accounting principle that says that a business should recognize its…

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: S1] Concerns over the estate valuation and taxation rarely occur when prices cannot be placed on…

A: Valuation and taxation requirements for financial reporting purposes and for taxation compliance…

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: 06) Which of the following is a characteristic of the cost method of accounting for subsidiary…

A: Lets understand the basics. Cost method of accounting for subsidiary operation needs to follow when…

Q: Explain the key steps in the acquisition method in accounting for business combination. Why Fair…

A: Business Combination- It is a situation when an entity acquires the business of other entity or…

Q: consolidated income statement

A: Consolidated Income Statement -: A revenue or income statement that incorporates the income,…

Q: 1. Which is correct concerning capitalization of borrowing cost? If the borrowing is directly…

A: Introduction:- Borrowing costs are capitalized as a part of the cost of the qualifying asset only…

Q: Which of the following represent potential gains from an acquisition? I. Increased use of debt II.…

A: Solution: When acquisitions are done, the company size and scale increases and it get benefits 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: 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: 1. Which of the following creates the largest temporary differences (think taxes): a. Other…

A: A temporary difference is explained as the differences between the amount of asset or liability…

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: 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: Other comprehensive income includes all of the following, except: unrealized gains on available for…

A: Other comprehensive income includes income that does not need to consider under net income currently…

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: Provide some examples of items that would be adjusted directly against equity, rather than…

A: There are certain items that are directly adjusted to equity rather than recognized in the profit…

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: Statement I. Book value per share is tantamount to earnings per share Statement II. Dividends…

A: Book value per share is ratio of shareholders equity less preferred equity to number of shares…

Q: Gem Company classifies a portion of its retained earnings as appropriated for loss contingencies.…

A: Retained earning is the earning accumulated over a period of time. It is used for various purposes…

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

A: A contract entered into between two parties that give rise to a financial asset for one party and a…

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: While putting the value or price of an entity in financial records the lowest price is recorded not…

A: Accounting is the process of recording financial transactions (which can be measured in terms of…

Q: Under IFRS 9, the cumulative balance of equity as a result of measuring financial assets at fair…

A: The equity account represents the changes in the equity shareholders of the company. The treasury…