Which of the Following Statements Is Not in Accordance with AASB

question 65

Multiple Choice

Which of the following statements is not in accordance with AASB 3 Business Combinations?

• A) An entity shall account for each business combination by applying the acquisition method.
• B) For each business combination, one of the combining entities shall be identified as the acquirer.
• C) The acquirer is required to recognise, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree.
• D) The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date agreed values.

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Definitions:

Profit-Maximizing

A strategy or behavior aimed at making the highest possible profit, where marginal costs equal marginal revenues.

Identical Demand

Refers to a market situation where all consumers have the same desire or need for a particular product or service.

Demand Elasticities

Demand elasticities measure how sensitive the quantity demanded of a good or service is to changes in its price, income levels, or other factors.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to buy at various prices.