IAS 27 Outlines the Requirements for Identifying the Company That

question 30

Multiple Choice

IAS 27 outlines the requirements for identifying the company that is the acquirer in a business combination when it's not clear who that is. Which is NOT a consideration in determining which company is the acquirer?

• A) If the means of payment is cash, which party is paying the cash.
• B) Relative holdings of voting shares in the combined entity.
• C) Voting rights of the respective parties after the combination of their businesses.
• D) Any by-laws or provisions of the incorporation acts of each company that details the manner in which a business combination will occur at law.