When Are Parent Companies Allowed to Comprehensively Revalue the Assets

question 44

Multiple Choice

When are parent companies allowed to comprehensively revalue the assets and liabilities of a subsidiary to their fair values at the acquisition date through the use of push-down accounting, following a business combination?

• A) When reporting under ASPE and there is a significant non-controlling interest
• B) When reporting under ASPE and there is an insignificant (or no) non-controlling interest
• C) When reporting under IFRS and there is a significant non-controlling interest
• D) When reporting under IFRS and there is an insignificant (or no) non-controlling interest

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Definitions:

Gymnosperm

A group of seed-producing plants that includes conifers, cycads, ginkgo, and gnetophytes, which do not form flowers and fruits.

Ferns

A group of non-flowering plants that reproduce via spores, featuring large leaves and lacking seeds and flowers.

Rhizoids

Thin, root-like structures found in non-vascular plants, fungi, and some protists, serving primarily for attachment and in some cases, absorption.

Sporophyte

The diploid, spore-producing phase of plants and algae that undergo alternation of generations, in contrast to the haploid gametophyte phase.