For the Purposes of Recognising an Item of Property, Plant

question 36

Multiple Choice

For the purposes of recognising an item of property, plant and equipment, the acquisition date is defined in AASB 3 Business Combination as the date:

• A) on which the acquirer obtains control of the acquiree.
• B) the contract to exchange the assets is signed.
• C) on which the offer to acquire the asset becomes unconditional.
• D) the consideration is paid.

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Definitions:

Legal Fees

Costs charged by lawyers for their services.

Subscription Price

The fee charged to customers for accessing a product or service for a specified period, typically recurring monthly or annually.

Rights Offering

A process by which a company offers its existing shareholders the opportunity to buy additional shares at a discounted price before the new shares are offered to the public.

Market Price

The contemporary price at which the market allows an asset or service to be bought or sold.