How does IFRS 3 require equity interests in business combination achieved in stages to be measured?
A)Equity interests should be added at their current fair value
B)Equity interests should be added at their acquisition date fair value
C)Equity interests should be remeasured at acquisition date fair value,with recognition of the resulting changes in profit or loss
D)Equity interests should be remeasured at current fair value,with r recognition of the resulting changes in profit or loss

Question

Quizplus · Accepted Answer

IFRS 3 requires equity interests in business combinations achieved in stages to be remeasured at their acquisition date fair value, with recognition of the resulting changes in profit or loss. This means that the fair value of the equity interests held prior to the acquisition date will be adjusted to reflect their acquisition date fair value. Any changes resulting from this remeasurement will be recognized in the acquirer's profit or loss.

How Does IFRS 3 Require Equity Interests in Business Combination