Under AASB 3 Business Combinations,the required method of accounting for a business combination is the:
A)control method.
B)acquisition method.
C)purchase method.
D)combination method.

Question

Quizplus · Accepted Answer

Under AASB 3, the required method of accounting for a business combination is the acquisition method. This method requires the acquirer to recognize and measure the identifiable assets, liabilities, and contingent liabilities of the acquiree at fair value at the acquisition date. This method also requires the acquirer to recognize any goodwill arising from the acquisition.

Under AASB 3 Business Combinations,the Required Method of Accounting for a Business