AASB 3 Specifies That Using the Single-Date Method Where a Parent

Multiple Choice

AASB 3 specifies that using the single-date method where a parent entity purchases additional shares in a subsidiary over time:

A) No further goodwill on purchase may be recognised. Any excess payment over the fair value of the additional net assets purchased is to be written off in the period of the purchase.
B) Each purchase of shares is to be treated as part of a single, combined purchase so that the amount of goodwill reported in the consolidated financial statements cannot be increased at the discretion of the controlling entity.
C) Goodwill would be recognised by a single consolidation journal entry at that point in time when the parent entity ultimately gains control of the subsidiary.
D) The parent entity may choose between treating the purchases separately or combining them into a single transaction.