Question 1

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

Accepted Answer

A) finances the business combination 
B) gives up control over the net assets acquired 
C) obtains control of the net assets the other entity 
D) pays the acquisition consideration. 
A) finances the business combination 
B) gives up control over the net assets acquired 
C) obtains control of the net assets the other entity 
D) pays the acquisition consideration.

Question 2

Valdez Limited acquired a 25% interest in Alaska Pty Ltd on 1 January 2011.On 15 September 2011 it acquired an additional 10% interest,and on 15 March 2012 a further 40%.Under AASB 3 a business combination occurs on:

Accepted Answer

A) 1 January 2011 
B) 15 September 2011 
C) 15 March 2012 
D) All of the above 
A) 1 January 2011 
B) 15 September 2011 
C) 15 March 2012 
D) All of the above

Question 3

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

Accepted Answer

A) a substantive agreement between the combining parties is reached 
B) the acquirer effectively obtains control of the acquiree 
C) the business combination is announced to the public 
D) the acquirer announces the acquisition to the acquiree. 
A) a substantive agreement between the combining parties is reached 
B) the acquirer effectively obtains control of the acquiree 
C) the business combination is announced to the public 
D) the acquirer announces the acquisition to the acquiree.

Question 4

Under AASB 3 Business Combinations,a gain on bargain purchase arises when the acquirer's interest in the net fair value of the acquiree's identifiable net assets and contingent liabilities is:

Accepted Answer

A) less than the carrying amount of the net assets acquired 
B) less than the consideration transferred 
C) greater than the consideration transferred 
D) more than the book values of the identifiable assets acquired. 
A) less than the carrying amount of the net assets acquired 
B) less than the consideration transferred 
C) greater than the consideration transferred 
D) more than the book values of the identifiable assets acquired.

Question 5

Transaction costs are capitalised into the cost of an investment in another entity when:

Accepted Answer

A) the entity makes an irrevocable election to present subsequent changes in fair value in other profit or loss rather than other comprehensive income. 
B) the entity makes an irrevocable election to present subsequent changes in fair value in other comprehensive income rather than in profit or loss. 
C) the entity measures the investment at cost 
D) the entity measures the investment at fair value 
A) the entity makes an irrevocable election to present subsequent changes in fair value in other profit or loss rather than other comprehensive income. 
B) the entity makes an irrevocable election to present subsequent changes in fair value in other comprehensive income rather than in profit or loss. 
C) the entity measures the investment at cost 
D) the entity measures the investment at fair value

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

Valdez Limited acquired a 25% interest in Alaska Pty Ltd on 1 January 2011.On 15 September 2011 it acquired an additional 10% interest,and on 15 March 2012 a further 40%.Under AASB 3 a business combination occurs on:

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

Under AASB 3 Business Combinations,a gain on bargain purchase arises when the acquirer's interest in the net fair value of the acquiree's identifiable net assets and contingent liabilities is:

Transaction costs are capitalised into the cost of an investment in another entity when:

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters

Exam 10: Business Combinations

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

Valdez Limited acquired a 25% interest in Alaska Pty Ltd on 1 January 2011.On 15 September 2011 it acquired an additional 10% interest,and on 15 March 2012 a further 40%.Under AASB 3 a business combination occurs on:

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

Under AASB 3 Business Combinations,a gain on bargain purchase arises when the acquirer's interest in the net fair value of the acquiree's identifiable net assets and contingent liabilities is:

Transaction costs are capitalised into the cost of an investment in another entity when:

Nature and Regulation of Companies

Financing Company Operations

Company Operations

Fundamental Concepts of Corporate Governance

Fair Value Measurement

Accounting for Company Income Tax

Property, Plant and Equipment

Leases

Intangible Assets

Impairment of Assets

Disclosure: Legal Requirements and Accounting Polices

Disclosure: Presentation of Financial Statements

Disclosure: Statement of Cash Flows

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Accounting for Investments in Associates

Insolvency and Liquidation

Filters