IFRS 3/AASB 3 Requires That, If the Amount Paid for a Business

question 43

Multiple Choice

IFRS 3/AASB 3 requires that, if the amount paid for a business is less than the sum of the fair value of the net identifiable assets acquired, and this is a genuine bargain purchase, then the difference is to be:

• A) taken directly to an equity account.
• B) offset against any goodwill previously acquired.
• C) used to reduce the value of the monetary assets acquired.
• D) recognised immediately as a gain in the income statement.

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Definitions:

Enough Sleep

Receiving the adequate amount of sleep necessary for optimal health, performance, and well-being.

Biological Clock

An internal timing mechanism in organisms that regulates physiological and behavioral functions in a rhythmic cycle, such as sleep-wake patterns or reproductive cycles.

Desynchronization

The process by which two or more systems that were once operating in harmony lose their synchronized state.

Third Shift

Refers to the working hours from midnight to 8 AM, also known as the graveyard shift, which can disrupt natural circadian rhythms.