Question 1

Goodwill arising in a business combination is classified as:

Accepted Answer

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

Question 2

The information contained within Appendix B of IFRS 3 in relation to disclosure:

Accepted Answer

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

Question 3

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

Accepted Answer

A)  obtains control of the other entities 
B)  concedes control over the acquired entities 
C)  sells the acquired entity 
D)  receives the acquisition consideration. 
A)  obtains control of the other entities 
B)  concedes control over the acquired entities 
C)  sells the acquired entity 
D)  receives the acquisition consideration.

Question 4

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

Accepted Answer

A)  net assets acquired 
B)  costs directly attributable to the combination 
C)  consideration given only 
D)  consideration given plus directly attributable costs. 
A)  net assets acquired 
B)  costs directly attributable to the combination 
C)  consideration given only 
D)  consideration given plus directly attributable costs.

Question 5

Adjustments cannot be made subsequent to the initial accounting for:

Accepted Answer

A)  Goodwill 
B)  Restructuring costs 
C)  Contingent consideration 
D)  Contingent liabilities 
A)  Goodwill 
B)  Restructuring costs 
C)  Contingent consideration 
D)  Contingent liabilities

Question 6

In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:

Accepted Answer

A)  its fair value can be measured reliably 
B)  it must be a non-current item 
C)  it must be measured using the present value method d, it may not be a non-monetary asset. 
A)  its fair value can be measured reliably 
B)  it must be a non-current item 
C)  it must be measured using the present value method d, it may not be a non-monetary asset.

Question 7

Goodwill is measured as the difference between the:

Accepted Answer

A)  cost of the assets given up, and the cost of the net assets acquired 
B)  cost of the net assets acquired, and the net present value of the consideration given up 
C)  present value of the consideration transferred, and the present value of the net assets acquired 
D)  consideration transferred, and the fair value of the assets and liabilities acquired 
A)  cost of the assets given up, and the cost of the net assets acquired 
B)  cost of the net assets acquired, and the net present value of the consideration given up 
C)  present value of the consideration transferred, and the present value of the net assets acquired 
D)  consideration transferred, and the fair value of the assets and liabilities acquired

Question 8

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

Accepted Answer

A)  trademarks 
B)  experienced marketing team 
C)  newspaper mastheads 
D)  order backlogs. 
A)  trademarks 
B)  experienced marketing team 
C)  newspaper mastheads 
D)  order backlogs.

Question 9

A business combination is defined as:

Accepted Answer

A)  A transaction in which an acquirer obtains control of an acquiree 
B)  A transaction in which one entity obtains control of one or more other entities 
C)  A transaction or other event in which an acquirer obtains control of one or more businesses 
D)  A transaction or other event in which an entity obtains control of one or more businesses 
A)  A transaction in which an acquirer obtains control of an acquiree 
B)  A transaction in which one entity obtains control of one or more other entities 
C)  A transaction or other event in which an acquirer obtains control of one or more businesses 
D)  A transaction or other event in which an entity obtains control of one or more businesses

Question 10

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

Accepted Answer

A)  present value method 
B)  estimated total of future cash outflows, undiscounted 
C)  face value of the liabilities 
D)  cash method. 
A)  present value method 
B)  estimated total of future cash outflows, undiscounted 
C)  face value of the liabilities 
D)  cash method.

Goodwill arising in a business combination is classified as:

The information contained within Appendix B of IFRS 3 in relation to disclosure:

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

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

Adjustments cannot be made subsequent to the initial accounting for:

In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:

Goodwill is measured as the difference between the:

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

A business combination is defined as:

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

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters

Exam 14: Business Combinations

Goodwill arising in a business combination is classified as:

The information contained within Appendix B of IFRS 3 in relation to disclosure:

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

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

Adjustments cannot be made subsequent to the initial accounting for:

In order for a tangible asset to be recognised by an acquirer under a business combination it must be probable that future economic benefits will flow to the acquirer and:

Goodwill is measured as the difference between the:

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

A business combination is defined as:

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

The Conceptual Framework of the Iasb

Shareholders Equity: Share Capital and Reserves

Fair Value Measurement

Revenue

Provisions, Contingent Liabilities and Contingent Assets

Income Taxes

Financial Instruments

Share-Based Payments

Inventories

Employee Benefits

Property, Plant and Equipment

Leases

Intangible Assets

Impairment of Assets

Accounting for Mineral Resources

Agriculture

Financial Statement Presentation

Statement of Cash Flows

Earnings Per Share

Operating Segments

Operating Segments

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Translation of the Financial Statements of Foreign Entities

Associates and Joint Ventures

Joint Arrangements

Filters