Which of the Following Statements Is Correct

question 47

Multiple Choice

Which of the following statements is correct?

• A) AASB 3/IFRS 3 Business Combinations requires that any revaluations of a subsidiary's assets at acquisition date must be done in the consolidation worksheet.
• B) The revaluation of non-current assets in the subsidiary's records means that the subsidiary has adopted the cost model of accounting for those assets.
• C) Revaluations of assets such as goodwill and inventory are not permitted in the accounting records of the subsidiary.
• D) Inventory can be revalued to an amount greater than its cost in the records of the subsidiary.

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Definitions:

Earthworms

Terrestrial invertebrates that belong to the class Oligochaeta, which are known for their role in soil aeration and composting through their digestive process.

Polychaete

A class of annelid worms characterized by segmented bodies and numerous bristles, commonly found in marine environments.

Coelom

A fluid-filled cavity between the gut and body wall that is lined by tissue derived from mesoderm; the main body cavity of most animals.

Radula

A toothed, chitinous ribbon in the mouth of molluscs, used for scraping or cutting food before ingestion.