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.

---

Definitions:

Improvements

Refers to enhancements or betterments in situations, processes, or qualities.

Deficits

The shortfall or deficiency in a particular area such as budget, skill, or knowledge.

Infant Memory

The capacity of infants to retain information and form memories, which is essential for developmental milestones such as recognizing caregivers and learning language.

Womb Experiences

The conditions and stimuli an individual is exposed to while in the mother's uterus, which can influence development and health.