According to AASB 3 Business Combinations, the Key Principle Relating

question 4

Multiple Choice

According to AASB 3 Business Combinations, the key principle relating to the disclosure of information about business combinations is to disclose information that:

• A) does not give an advantage to the competitors of a consolidated group.
• B) provides financial statement users with information about the parent entity only.
• C) enables financial statement users to evaluate the nature and financial effect of business combinations that occurred during the reporting period.
• D) enables the preparation of the consolidated financial statements in the most cost-effective manner.

Account for the sale or disposal of depreciable assets and calculate gain or loss on disposition.

Understand the principles of asset impairment and how to record it.

Prepare journal entries for transactions involving intangible assets including purchase, amortization, and impairment.

Analyze and record goodwill in business acquisition transactions.