Appendix B of AASB 3 Business Combinations Requires Disclosure of Which

question 1

Multiple Choice

Appendix B of AASB 3 Business Combinations requires disclosure of which of the following?
I.Details of contingent consideration.
II.The date of exchange.
III.Carrying amounts of assets and liabilities in business combinations where shares are acquired.
IV.A qualitative description of the factors that make up goodwill.

• A)I,II and IV only
• B)I,III and IV only
• C)I,II and III only
• D)I,II,III and IV

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Definitions:

Fair Value

The estimated price at which an asset can be bought or sold in an orderly transaction between market participants at the valuation date.

Unrealized Gain

An increase in the value of an asset that has not been sold, thus not yet generating actual profit.

Readily Marketable

Items or securities that are readily marketable can be quickly sold in the market without significantly affecting their price.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and receive cash from sales, representing the full cycle of a business's operations.