Under the Full Goodwill Method, a Control Premium Is Recognised

question 49

Multiple Choice

Under the full goodwill method, a control premium is recognised when:

• A) the parent paid less than the fair value for the shares they acquired.
• B) the parent paid more than the fair value for the shares they acquired.
• C) the consideration transferred by the parent is more than the fair value of the identifiable net assets acquired.
• D) the consideration transferred by the parent is less than the fair value of the identifiable net assets acquired.

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Definitions:

Haustra

Saccular dilations or pouches in the colon that are formed by the gathering of the longitudinal muscles of the colon.

Cementum

A specialized bone-like substance covering the root of a tooth, anchoring it to the jawbone via the periodontal ligament.

Accessory Organ

An organ that supports the function of major organs and systems, such as the pancreas in digestion.

Muscularis Externa

The layer of muscle in the gastrointestinal tract wall that is responsible for gut movement through peristalsis.