Two Entities a Limited and B Limited Together Form a Third

question 9

Multiple Choice

Two entities A Limited and B Limited together form a third entity, C Limited. C Limited acquires A Limited and B Limited. In this situation, AASB 3/IFRS 3 Business Combinations, adjudges that:

• A) A Limited and B Limited cease to exist and C Limited is the acquirer.
• B) the combined A Limited and B Limited, is the acquirer of C Limited.
• C) C Limited is considered to be the acquirer.
• D) C Limited is not to be considered to be the acquirer.

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Definitions:

Peacefully

In a manner free from disturbance or conflict; tranquil and calm.

Immigrants

People who come to live permanently in a foreign country where they were not born and do not have citizenship by birth.

Assimilate

The process by which individuals or groups adopt the culture, customs, and norms of another group, often losing their original identity.

Acculturate

The process of adopting the cultural traits or social patterns of another group, often occurring as a result of prolonged contact.