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:

Large Capacity

Refers to the ability to hold or contain a large amount of information, substance, or items either physically or mentally.

Long-term Storage

The aspect of memory that pertains to the capacity to store information indefinitely.

Short-term Storage

A cognitive process related to memory that is responsible for temporarily holding small amounts of information in an active, readily available state.

Semantic Memory

A type of explicit memory that includes a person’s knowledge about the world.