Which of the Following Statements About IFRS 3, Business Combinations

question 16

Multiple Choice

Which of the following statements about IFRS 3, Business Combinations is true?

• A)IFRS 3 allows organizations to use either the parent-company method or the entity method.
• B)IFRS 3 allows organizations to use either the parent-company extension method or the entity method.
• C)IFRS 3 allows organizations to use either the parent-company method or the parent-company extension method.
• D)IFRS 3 allows organizations to use either the parent-company method, the parent-company extension method, or the entity method.

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Definitions:

Representativeness Heuristic

A cognitive shortcut used in decision making, where the likelihood of an object belonging to a category is assessed based on how similar it is to one's conception of that category.

Conjunction Fallacy

A logical fallacy where people incorrectly judge the probability of the conjunction of two events to be more likely than the probability of a single one of those events.

Subcategory

A more specific grouping within a larger category, often distinguished by particular characteristics.

Semantic Slanting

The deliberate choice of words to create specific emotional responses or to subtly influence perception.