Which of the following is not one of the factors in AASB 3 Business Combinations that guide the identification of the acquirer where 2 companies combine to form a new company?
A)The entity that has the smaller fair value.
B)The entity that has a significantly greater fair value.
C)The entity whose management is able to dominate the business combination.
D)The entity that gives up the cash or other assets where equity instruments are exchanged for cash or other assets.

Question

Quizplus · Accepted Answer

AASB 3 does not consider the entity with the smaller fair value as a factor in identifying the acquirer. Instead, it focuses on factors like the entity with greater fair value, management control, and the entity giving up cash or assets.

Which of the Following Is Not One of the Factors