Which of the Following Statements Is Incorrect

question 31

Multiple Choice

Which of the following statements is incorrect?

• A) The NCI is unaffected by the existence of any gain on bargain purchase.
• B) The NCI share of equity at acquisition date is adjusted for its share of any gain on bargain purchase.
• C) Any gain on bargain purchase is recognised in the pre-acquisition entry.
• D) The pre-acquisition entry only adjusts for the parent's share of the pre-acquisition equity.

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Definitions:

Enforceable Legal Rights

are rights granted by the law that can be brought before a court for protection or enforcement.

Donee Beneficiary

A third-party beneficiary for whom a contract is intentionally made to benefit as a gift.

Constructive Breach

A type of breach of contract where one party indirectly fails to perform their obligations, thereby allowing the other party to treat the contract as broken.

Contractual Obligations

Duties that are legally binding and arise from agreements or contracts between two or more parties.