The formation of a new entity to acquire the shares of two (or more)other entities is an example of a business combination in accordance with AASB 3 Business Combinations.

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A business combination refers to a transaction or event where an acquirer takes control of one or more businesses. The formation of a new entity to acquire the shares of two or more other entities is one type of business combination under AASB 3 Business Combinations.

The Formation of a New Entity to Acquire the Shares