The IASB Standard (IFRS 3 Business Combinations) Issued with Respect

question 35

Multiple Choice

The IASB standard (IFRS 3 Business Combinations) issued with respect to the treatment of negative goodwill requires that:

• A) it must be recognized in income immediately as an extraordinary item.
• B) it must be recognized in income immediately.
• C) it can be deferred and amortized over a maximum of 40 years.
• D) it must be reflected as an increase in Liabilities and a Reduction in Capital for the Parent Company.

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Definitions:

Flowering Plant

A plant that reproduces through the production of flowers and seeds, belonging to the angiosperm classification.

Directional Selection

A type of natural selection where an extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time.

White-Coated Hares

Refers to the snowshoe hare (Lepus americanus), which changes its coat color from brown to white in the winter to blend in with snow as a camouflage against predators.

Ice Age

A period of long-term reduction in the temperature of Earth's surface and atmosphere, resulting in the presence or expansion of continental and polar ice sheets and alpine glaciers.