Under the single-date method,the aggregate costs of the investments would be eliminated against the parent's share of capital and reserves at the date control of the subsidiary has been ultimately established and only one amount of goodwill (or bargain gain on purchase)is calculated.

Question

Quizplus · Accepted Answer

The statement is true. Under the single-date method of accounting for business combinations, the aggregate costs of the investments are initially eliminated against the parent's share of capital and reserves at the date control of the subsidiary has been ultimately established. Only one amount of goodwill (or bargain gain on purchase) is calculated at this date.

Under the Single-Date Method,the Aggregate Costs of the Investments Would