Which of the Following Statements Is True About Pooling of Interests

question 22

Multiple Choice

Which of the following statements is true about pooling of interests method of accounting for business combinations?

• A)The pooling of interests method is no longer acceptable under IFRS.
• B)Goodwill arises only when the pooling of interests method is used for business combinations.
• C)Pooling of interests is used for international consolidations but never for domestic consolidations.
• D)The purchase method is used only when less than 100% of an entity's voting shares are acquired.

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Definitions:

Catabolized

Refers to the breakdown of complex molecules into simpler ones within the body, usually for the release of energy and the recycling of components.

ATP

Adenosine triphosphate, a molecule that carries energy within cells, supporting various physiological functions including muscle contraction and nerve impulse propagation.

Warm-up

Activities or exercises performed before a workout or physical activity to prepare the body and reduce the risk of injury.

Cool-down

A series of gentle exercises done after more intense physical activity to gradually lower the body's temperature and heart rate.