According to IFRS 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

According to IFRS 3, the method of accounting for a business combination is the acquisition method, which involves recognizing and measuring the assets and liabilities acquired at their fair values and recording any difference as goodwill. This method reflects the economic reality of the transaction and the acquirer's control over the acquiree. Other options listed are not recognized methods for accounting business combinations under IFRS 3.

According to IFRS 3, the Method of Accounting for a Business