Which Is NOT True About Pooling of Interests Accounting for Business

question 3

Multiple Choice

Which is NOT true about pooling of interests accounting for business combinations?

• A)IFRS 3 which replaced IAS 22 confirmed use of pooling of interests for true mergers
• B)The assets and liabilities of entities are combined on the basis of their book values
• C)It was identified by IAS 22
• D)It is required in a situation of ' uniting of interests'

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Definitions:

Indexed Mutual Fund

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Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

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