Information Flows Among Financial Statements in This Order

question 90

Multiple Choice

Information flows among financial statements in this order:

• A)statement of financial position to statement of changes in equity to statement of comprehensive income to statement of income.
• B)statement of income to statement of changes in equity to statement of comprehensive income to statement of financial position.
• C)statement of income to statement of comprehensive income to statement of changes in equity to statement of financial position.
• D)statement of changes in equity to statement of financial position to statement of comprehensive income to statement of income.

Identify the disclosure requirements for business combinations under IFRS 3.

Explain the effects of business combinations on shareholder's equity and consolidated balance sheet.

Describe the impact of fair value adjustments in business combinations.

Evaluate the treatment and recognition of contingent consideration under IFRS 3.

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Definitions:

Total Materials Costs

The total expense incurred by a company for the materials that are used in the production process of its goods or services.

Manufacturing Cost

Direct expenditures involved in creating goods, such as components, employee wages, and additional production overhead.

Conversion Cost

The combination of labor and overhead costs incurred to convert raw materials into finished products.

Materials Cost

The total expense incurred in acquiring raw materials used in the manufacturing process of products.