Appendix B of IFRS 3 Provides an Extensive List of What

question 2

Multiple Choice

Appendix B of IFRS 3 provides an extensive list of what must be disclosed for each Business Combination. Which of the following items is NOT included in that list?

• A) The acquisition-date fair value of the total consideration given.
• B) The primary reasons for the business combination and a description of how the acquirer obtained control of the acquiree.
• C) The percentage of voting equity interests acquired.
• D) The net assets of both companies at book value as disclosed in the financial statements of each company prior to the business combination.

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Definitions:

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, service, or commodity, usually intended to ensure fair conditions for producers.

Shortage/Surplus

A market condition where the quantity demanded exceeds the quantity supplied (shortage) or where the quantity supplied exceeds the quantity demanded (surplus).

Price Floor

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, often above the equilibrium price.

Shortage/Surplus

Economic conditions where the quantity of a good demanded exceeds its supply (shortage) or where supply exceeds demand (surplus).