If Shares Are Issued as Part of the Consideration Paid

question 1

Multiple Choice

If shares are issued as part of the consideration paid, transactions costs such as brokerage fees may be incurred. According to IFRS 3 Business Combinations the appropriate accounting treatment for such costs in the records of the acquirer is a debit to:

• A) share capital
• B) investments
• C) cash
• D) acquisition expenses.

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Definitions:

Fixed-Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.

Operant Conditioning

A method for behavior enhancement or reduction through the strategic use of reinforcement or punishment.

Aggressive Models

Reference to individuals or representations that exhibit aggressive behaviors, which may then be imitated by observers, according to social learning theory.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.