Which of the following is not one of the factors in AASB 3/IFRS 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/IFRS 3 Business Combinations identifies several factors that guide the identification of the acquirer in a business combination. These include the entity that: has the greater portion of voting rights; has the ability to govern the financial and operating policies of the combined entity; has the greater proportion of senior executives and directors in the combined entity; and has the significant influence over the combined entity. The entity with the smaller fair value is not considered a factor in determining the acquirer.

Which of the Following Is Not One of the Factors