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.

Question

Quizplus · Accepted Answer

The key principle relating to the disclosure of information about business combinations, as per AASB 3, is to disclose information that enables financial statement users to evaluate the nature and financial effect of business combinations that occurred during the reporting period. This helps the users to understand the impact of such combinations on the financial statements of the entity, and make informed decisions about their investments. The other options given are not relevant to the disclosure of information about business combinations. Therefore, option A is the correct answer.

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