Which One of the Following Statements Regarding IFRS and Accounting

question 11

Multiple Choice

Which one of the following statements regarding IFRS and accounting for step acquisitions is most correct?

• A) Under IFRS goodwill is identified and net assets remeasured to fair value for all subsequent transactions, both increasing and decreasing the ownership percentage, after control is achieved.
• B) IFRS requires the recording of additional goodwill on subsequent increases in the parent's ownership percentage.
• C) Under IFRS acquisition accounting is applied only at the date that control is achieved.
• D) IFRS requires the non-controlling interest to be measured at fair value.

---

Definitions:

Copyrights

Legal protections granted to the creators of original works, providing them exclusive rights to use and distribute their work for a certain period.

Paris Convention

An international treaty designed to provide a unified set of rules for the protection of intellectual property rights across the signatory countries.

National Treatment

A GATT principle of trade law that prohibits WTO member states from regulating, taxing, or otherwise treating imported products any differently from domestically produced products.

Right of Priority

An entitlement to preferential treatment or consideration over others, often in the context of legal rights or the position in an ordering system.