Exam 26: Share-Based Payment

A business combination is defined as:

Goodwill arising in a business combination is classified as:

The following items are NOT deemed to be items that would meet the definition of an intangible asset given by IFRS 3:

In a business combination, the acquiree is the party that:

When accounting for a business combination a contingent liability is recognised if:

Goodwill is measured as the difference between the:

Where the acquirer purchases assets and assumes liabilities of another entity it does NOT need to consider measurement of:

Adjustments cannot be made subsequent to the initial accounting for:

Johnson Limited estimated the net present value of future cash flows from specialised Plant acquired under a business combination to be $30 000. A replacement cost for the Plant is estimated to be $33 000. The Plant has been independently appraised at a value of $31 000. A similar item of Plant cost the acquirer $29 000 the previous year. What is the fair value for recognition of the Plant under a business combination?

Net employee benefit liabilities acquired in a business combination are measured by using the:

Neil Limited sold a business to Howell Limited for $60 000. All assets were recorded by the acquiree at their fair values as follows: • Land $30 000 • Inventory $20 000 • Trade receivables $4000. When recording the sale, the acquiree recognises:

Valdez Limited acquired a 25% interest in Alaska Pty Ltd on 1 January 2016. On 15 September 2016 it acquired an additional 10% interest, and on 15 March 2017 a further 40%. According to IFRS 3, a business combination occurs on:

In a business combination, the acquirer is the party that:

Damon Limited acquired the net assets of Gina Limited. Damon Limited provided an item of equipment as part of the consideration. The fair value of the equipment was €13 000. It cost €20 000 and had a carrying amount of €12 000. Which of the following entries appropriately reflects the gain or loss on the equipment?

Appendix B of IFRS 3 requires disclosure of which of the following? I details of contingent consideration II the date of exchange III carrying amounts of assets and liabilities in business combinations where shares are acquired IV a qualitative description of the factors that make up goodwill

The acquisition date for a business combination is the date on which:

The consideration transferred in a business combination is measured as the fair value of the:

Oliveira Limited estimated that the net present value of future cash flows from Equipment acquired in a business combination is $15 000. The cost of replacing the Equipment is estimated to be $18 000. The Equipment has been independently appraised at a value of $14 000. A similar item of Equipment cost the acquirer $19 000 the previous year. The fair value at which the Equipment will be recognised when recording the business combination is:

According to IFRS 3, the method of accounting for a business combination is the:

When an acquiree disposes of a business, the gain or loss is recognised in: