Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair value. O According to IFRS # 3: Revised, cost directly attributable in effecting the business combination (e.g., finders' fee and other direct cost) must be charged to share premium. Transaction costs directly related to the issue of debt instruments are deducted from the fair value of the debt on initial recognition and are amortized over the life of the deht as nart of the
Which of the following statements is TRUE? O The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair value. O According to IFRS # 3: Revised, cost directly attributable in effecting the business combination (e.g., finders' fee and other direct cost) must be charged to share premium. Transaction costs directly related to the issue of debt instruments are deducted from the fair value of the debt on initial recognition and are amortized over the life of the deht as nart of the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Which of the following statements is TRUE?
O The acquirer shall measure the identifiable assets acquired and the liabilities
assumed at their acquisition-date fair value.
O According to IFRS #3: Revised, cost directly attributable in effecting the
business combination (e.g., finders' fee and other direct cost) must be charged
to share premium.
Transaction costs directly related to the issue of debt instruments are
deducted from the fair value of the debt on initial recognition and are
amortized over the life of the debt as part of the effective interest rate.
Directly attributable transaction costs incurred issuing equity instruments are
deducted from revenue.
In net asset acquisition, gain on bargain purchase is recognized in the Profit or
Loss of the acquirer (after reassessment) if the consideration transferred is
more than the fair value of net assets acquired.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88378a43-c9ae-472f-bcbb-288898486356%2Fa4e96776-ac3e-4132-91d1-975b075a3f54%2Fqgb4u8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements is TRUE?
O The acquirer shall measure the identifiable assets acquired and the liabilities
assumed at their acquisition-date fair value.
O According to IFRS #3: Revised, cost directly attributable in effecting the
business combination (e.g., finders' fee and other direct cost) must be charged
to share premium.
Transaction costs directly related to the issue of debt instruments are
deducted from the fair value of the debt on initial recognition and are
amortized over the life of the debt as part of the effective interest rate.
Directly attributable transaction costs incurred issuing equity instruments are
deducted from revenue.
In net asset acquisition, gain on bargain purchase is recognized in the Profit or
Loss of the acquirer (after reassessment) if the consideration transferred is
more than the fair value of net assets acquired.
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