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Which of the following statements are correct? a.I., II. and III. only b.I. only c.I. and II. only d.I., II., III. and IV. I. For
Which of the following statements are correct?
a.I., II. and III. only
b.I. only
c.I. and II. only
d.I., II., III. and IV.
I. | For a group of assets to constitute a business, they must be capable of being conducted and managed for the purpose of generating income. |
II. | The effect of an intragroup sale of inventories at a profit, where the inventories are still on hand at the end of the reporting period, is that both profit and the inventory asset are overstated. |
III. | The fair value adjustment entries may result in the recognition of assets and liabilities that are not recognised in the subsidiary's accounting records. |
IV. | A transfer between retained earnings and a general reserve after acquisition date will result in a corresponding change to the substitution elimination entry |
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