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

question 25

Multiple Choice

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

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

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Definitions:

Shepard And Metzler

Pioneers of mental rotation studies, demonstrating how people can mentally manipulate 3D objects.

Object's Identity

pertains to the unique characteristics and properties that distinguish one object from another, allowing individuals to recognize and differentiate objects.

Tacit Knowledge

People’s underlying and implicit beliefs about a task or an event.

Explicit Knowledge

Knowledge that can be articulated, codified, and communicated; it includes facts, information, and skills that a person can convey in a systematic and formal manner.