1. A finance lease is defined in AASB 16/IFRS 16 as:

a.

a rental agreement of less than 12 months duration.

b.

a lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

c.

a lease that is not classified as an operating lease.

d.

a lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

2. The following statements are reasons as to why entities do not use the full goodwill method. Which of these statements is incorrect?

a. There is insufficient evidence to assess the marginal benefits of reporting the acquisition-date fair value of the NCI.

b. It is more costly to measure NCI at fair value.

c. The full goodwill method results in less reliable NCI information due to difficulties in measuring NCI at fair value.

d. Users of financial statements do not see any value in the reported NCI.

3. When one entity controls another entity, the business combination results in which of the following types of relationship?

a.

Investorassociate.

b.

Investorinvestee.

c.

Parentchild.

d.

Parentsubsidiary.