Under AASB 3 the method of accounting for a business combination is the:
A) joint venture method
B) purchase method
C) market value method
D) acquisition method

Question

Quizplus · Accepted Answer

Under AASB 3, the method of accounting for a business combination is the acquisition method, which requires the identification of the acquirer, determination of the acquisition date, recognition and measurement of the identifiable assets, liabilities and contingent liabilities, and the measurement of goodwill or gain on bargain purchase. Therefore, the best choice is D, the acquisition method.

Under AASB 3 the Method of Accounting for a Business