Under IFRS 3, Business Combinations, Which Method Must Be Used

question 46

Multiple Choice

Under IFRS 3, Business Combinations, which method must be used to account for business combinations?

• A)Purchase method.
• B)Acquisition method.
• C)New entity method.
• D)Pooling-of-interests method.

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Definitions:

General Warranty Deed

A deed containing a covenant in which the seller agrees to protect the buyer against being dispossessed because of any adverse claim against the land.

Quitclaim Deed

A legal document transferring a person's interest in real property without guaranteeing its clear title.

Commonly Used

Frequently utilized or employed in general practice.

Tenants by the Entirety

A form of joint property ownership specifically designed for married couples where both spouses have equal and undivided interest in the property.