In Accordance with AASB 3 Business Combinations,if an Intangible Asset

question 6

Multiple Choice

In accordance with AASB 3 Business Combinations,if an intangible asset is acquired in a business combination,the cost of the asset is its:

• A)fair value at the combination date.
• B)fair value at the acquisition date.
• C)current replacement cost at the acquisition date.
• D)discounted present value at the acquisition date.

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Definitions:

Basicity

A measure of the ability of a substance to accept hydrogen ions (protons), often used to describe the strength of bases.

Formic Acid

The simplest carboxylic acid, with the formula HCOOH, used industrially and as an antiseptic.

Ka

An equilibrium constant for the dissociation of a weak acid into its proton and conjugate base in solution; a measure of acid strength.

pKa

A measure of the acidity of a hydrogen atom in a molecule, indicating the tendency of the molecule to donate a proton.