Under IFRS 3,which Concept Must Be Used to Report the Assets

question 21

Multiple Choice

Under IFRS 3,which concept must be used to report the assets and liabilities of an acquired company on the parent company financial statements?

• A)parent company concept
• B)equity concept
• C)entity concept
• D)historical cost concept

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Definitions:

Implications

The possible effects or results of an action or decision, especially those that are unintended or indirect.

Backlash

A strong and negative reaction against a social or political change, often aimed at reasserting traditional norms and values.

Concept

An abstract idea or a mental symbol that represents a thing, category, or quality, forming the basis of human knowledge and understanding.

Internalize

The process by which individuals absorb and integrate the values, norms, and beliefs of their society into their own consciousness.