A business combination is defined in AASB 3/IFRS 3 as a transaction:
A) in which an acquiree obtains control of one or more businesses.
B) in which one entity obtains significant influence over one or more other entities.
C) or other event in which an acquirer obtains control of one or more businesses.
D) or other event in which an entity obtains control of one or more businesses.

Question

Quizplus · Accepted Answer

A business combination is a transaction or other event in which an acquirer obtains control of one or more businesses. Option A is incorrect as it describes the perspective of the acquiree. Option B is incorrect as it refers to significant influence rather than control. Option D is incorrect as it is too general and does not specify an acquirer.

A Business Combination Is Defined in AASB 3/IFRS 3 as a Transaction