Following the Accounting Concept of a Business Combination,a Business Combination

question 22

Multiple Choice

Following the accounting concept of a business combination,a business combination occurs when a company acquires an equity interest in another entity and has

• A)at least 20% ownership in the entity.
• B)more than 50% ownership in the entity.
• C)100% ownership in the entity.
• D)control over the entity,irrespective of the percentage owned.

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting standards for the preparation of public company financial statements.

International Financial Reporting Standards

A set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to make international financial reporting transparent and comparable.

SME

Refers to small and medium-sized enterprises, which are businesses with a limited number of employees and revenue, playing a significant role in the economy.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted for financial reporting by publicly traded companies.