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question 2 question 3 question 4 Appendix B of IFRS 3 provides an extensive list of what must be disclosed for each Business Combination. Which
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question 3
question 4
Appendix B of IFRS 3 provides an extensive list of what must be disclosed for each Business Combination. Which of the following items is NOT included in that list? The percentage of voting equity interests acquired. The net assets of both companies at book value as disclosed in the financial statements of each company prior to the business combination. The primary reasons for the business combination and a description of how the acquirer obtained control of the acquiree. The acquisition-date fair value of the total consideration given. 7 BAS Co. acquired 100% of the ordinary shares of HAT Co. for $10 million in cash. The following presents the book value and fair value of the property, plant and equipment (PPE) owned by the two companies at the date of acquisition (in millions): Book Value Fair Value PPE owned by BAS $15 $25 PPE owned by HAT $10 $40 What value would be reported for PPE on the consolidated balance sheet at the date of acquisition? 50 What value would be reported for PPE on the consolidated balance sheet at the date of acquisition? 50 55 35 40 Listen How would the cost of common stock issued to acquire the investee's net assets be recognized ? As an expense, close to profit and loss account. A reduction against equity. As an expense, close to other comprehensive income account. As an assets. Negative goodwill results when the total consideration (purchase price) is less than the fair value of identifiable net assets. True False
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