Under AASB 3/IFRS 3 Business Combinations, the Required Method of Accounting

question 33

Multiple Choice

Under AASB 3/IFRS 3 Business Combinations, the required method of accounting for a business combination is the:

• A) control method.
• B) acquisition method.
• C) purchase method.
• D) combination method.

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Definitions:

Responsibility Accounting

An accounting system that measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome.

Responsibility Reporting System

The preparation of reports for each level of responsibility in the company’s organization chart.

Static Budget

A fixed budget that does not change or adapt based on any variations in a company's activity levels or performance.

Flexible Budget

A budget that adjusts or varies with changes in volume, activity, or other relevant factors.