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:

Unit Of Input

A measurement of the amount of resources (labor, materials, etc.) used in the production of goods and services.

Average Product

The output per unit of input, calculated by dividing the total product by the quantity of input.

Marginal Product

Marginal product is the increase in output that results from adding one more unit of a specific input, holding all other inputs constant.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.