The Key Principle Relating to the Disclosure of Information About

question 1

Multiple Choice

The key principle relating to the disclosure of information about business combinations is to disclose information that:

• A) enables users to evaluate the nature and financial effect of business combinations that occurred during the reporting period
• B) enables the preparation of the consolidated financial statements in the most cost-effective manner
• C) does not give an advantage to the competitors of a business group
• D) provides users with information about the parent entity only.

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Definitions:

Omitted Terms

Terms or clauses that are not explicitly included in a contract or legal document but may be implied or necessary for completeness.

Contract

A legally enforceable agreement between two or more parties that is binding and requires each party to fulfill certain obligations.

Implied

In legal context, refers to obligations or rights that are not explicitly stated but are understood as a part of the agreement or contract.

Intervening Illegality

A situation where a change in law or illegal act by a third party prevents the fulfillment of a contract, thereby excusing performance by the contracted parties.