Question 1

Newspaper mastheads are an example of a marketing-related intangible asset.

Accepted Answer

A) True 
 B)False

Question 2

Subsequent to initial recognition, goodwill acquired under a business combination may be revalued.

Accepted Answer

A) True 
 B)False

Question 3

Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a:

Accepted Answer

A)  goodwill of $2000. 
B)  gain on bargain purchase of $2000. 
C)  goodwill of $14 000. 
D)  gain on bargain purchase of $60 000. 
A)  goodwill of $2000. 
B)  gain on bargain purchase of $2000. 
C)  goodwill of $14 000. 
D)  gain on bargain purchase of $60 000.

Question 4

For a deferred payment, the fair value to the acquirer is the amount the entity would have to borrow to settle the debt in the future.

Accepted Answer

A) True 
 B)False

Question 5

In a business combination, equity instruments issued as part of the purchase consideration should be measured at their original issue price.

Accepted Answer

A) True 
 B)False

Question 6

Core goodwill consists of:

Accepted Answer

A)  current goodwill and non-current goodwill. 
B)  going concern goodwill and combination goodwill. 
C)  current goodwill and future goodwill. 
D)  present goodwill and future goodwill. 
A)  current goodwill and non-current goodwill. 
B)  going concern goodwill and combination goodwill. 
C)  current goodwill and future goodwill. 
D)  present goodwill and future goodwill.

Question 7

The information contained within Appendix B of AASB 3/IFRS 3 Business Combinations in relation to disclosure:

Accepted Answer

A)  is an integral part of AASB 3/IFRS 3 containing application guidance. 
B)  is not mandatory, but contains optional additional disclosures. 
C)  contains prescribed presentation formats for disclosure of business combinations. 
D)  is complementary to the main disclosure requirements within the body of AASB 3/IFRS 3. 
A)  is an integral part of AASB 3/IFRS 3 containing application guidance. 
B)  is not mandatory, but contains optional additional disclosures. 
C)  contains prescribed presentation formats for disclosure of business combinations. 
D)  is complementary to the main disclosure requirements within the body of AASB 3/IFRS 3.

Question 8

Which of the following is not an example of a contract-based intangible asset?

Accepted Answer

A)  Franchise agreements 
B)  Unpatented technology 
C)  Trademarks 
D)  Pictures and photographs 
A)  Franchise agreements 
B)  Unpatented technology 
C)  Trademarks 
D)  Pictures and photographs

Question 9

Goodwill arising in a business combination is classified as a/an:

Accepted Answer

A)  item in equity. 
B)  asset. 
C)  liability. 
D)  expense associated with the acquisition. 
A)  item in equity. 
B)  asset. 
C)  liability. 
D)  expense associated with the acquisition.

Question 10

A gain on bargain purchase is recognised in profit or loss in the year it arises.

Accepted Answer

A) True 
 B)False

Newspaper mastheads are an example of a marketing-related intangible asset.

Subsequent to initial recognition, goodwill acquired under a business combination may be revalued.

Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a:

For a deferred payment, the fair value to the acquirer is the amount the entity would have to borrow to settle the debt in the future.

In a business combination, equity instruments issued as part of the purchase consideration should be measured at their original issue price.

Core goodwill consists of:

The information contained within Appendix B of AASB 3/IFRS 3 Business Combinations in relation to disclosure:

Which of the following is not an example of a contract-based intangible asset?

Goodwill arising in a business combination is classified as a/an:

A gain on bargain purchase is recognised in profit or loss in the year it arises.

Nature and Regulation of Companies

Financing Company Operations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters

Exam 3: Business Combinations

Newspaper mastheads are an example of a marketing-related intangible asset.

Subsequent to initial recognition, goodwill acquired under a business combination may be revalued.

Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a:

For a deferred payment, the fair value to the acquirer is the amount the entity would have to borrow to settle the debt in the future.

In a business combination, equity instruments issued as part of the purchase consideration should be measured at their original issue price.

Core goodwill consists of:

The information contained within Appendix B of AASB 3/IFRS 3 Business Combinations in relation to disclosure:

Which of the following is not an example of a contract-based intangible asset?

Goodwill arising in a business combination is classified as a/an:

A gain on bargain purchase is recognised in profit or loss in the year it arises.

Nature and Regulation of Companies

Financing Company Operations

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Financial Statements Into a Presentation Currency

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Company Income Tax

Property, Plant Equipment

Filters