Under IFRS 3 the Method of Accounting for a Business

question 6

Multiple Choice

Under IFRS 3 the method of accounting for a business combination is the:

• A) joint venture method
• B) purchase method
• C) market value method
• D) acquisition method

---

Definitions:

Three-Fifths Compromise

An agreement reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for purposes of representation and taxation.

Extra Representation

Additional or surplus representation, often in the context of legislative bodies where certain regions or groups receive more representatives than others based on various factors.

Slaves

Individuals forced into labor without pay and denied freedom, a practice seen in many societies historically and, in some forms, continuing today.

Great Compromise

A fundamental agreement made during the 1787 Constitutional Convention, which established the structure of the U.S. Congress with both proportional and equal representation.