According to AASB 3 Business Combinations,the Key Principle Relating to the Disclosure

question 20

Multiple Choice

According to AASB 3 Business Combinations,the key principle relating to the disclosure of information about business combinations is to disclose information that:

• A)enables financial statement users to evaluate the nature and financial effect of business combinations that occurred during the reporting period.
• B)enables the preparation of the consolidated financial statements in the most cost-effective manner.
• C)does not give an advantage to the competitors of a consolidated group.
• D)provides financial statement users with information about the parent entity only.

---

Definitions:

Profitable Product

A product that generates more revenue than the costs associated with its production, marketing, and distribution.

Sufficient Time

Proper or adequate amount of time needed to complete a task or process.

Grinding Machine

A machine tool that uses an abrasive wheel as a cutting tool to shape or finish metals or other materials.

Existing Capacity

The maximum output that a facility can produce under normal working conditions within a given period.