Two Entities a Limited and B Limited Together Form a Third

question 13

Multiple Choice

Two entities A Limited and B Limited together form a third entity,C Limited.C Limited acquires A Limited and B Limited.In this situation,AASB 3 Business Combinations,adjudges that:

• A)A Limited and B Limited cease to exist and C Limited is the acquirer
• B)The combined A Limited and B Limited,is the acquirer of C Limited
• C)C Limited is considered to be the acquirer
• D)C Limited is not to be considered to be the acquirer.

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Definitions:

Uplift

A geological process where Earth's crust is raised or elevated, often as a result of tectonic activity.

Isostasy

The equilibrium state of the Earth’s crust, where the forces pushing a land mass up are balanced by the weight of the mass itself pressing down.

Equanimity

A state of mental or emotional stability, especially in difficult situations.

Superposition

A principle in geology stating that in an undisturbed sequence of rocks, layers are older at the bottom and younger at the top.