AASB 3 is relevant when accounting for a business combination that:
A) involves mutual entities
B) results in the formation of a joint venture
C) results in an entity acquiring the net assets of another entity
D) involves entities or businesses that are not investor owned

Question

Quizplus · Accepted Answer

AASB 3 applies when one entity acquires the net assets of another entity, which is referred to as a business combination. This standard does not apply to joint ventures or mutual entities as those may involve different accounting treatments. It also applies to any type of entity, whether it is owned by investors or not.

AASB 3 Is Relevant When Accounting for a Business Combination