Which one of the following statements regarding IFRS and accounting for step acquisitions is most correct?
A) Under IFRS goodwill is identified and net assets remeasured to fair value for all subsequent transactions, both increasing and decreasing the ownership percentage, after control is achieved.
B) IFRS requires the recording of additional goodwill on subsequent increases in the parent's ownership percentage.
C) Under IFRS acquisition accounting is applied only at the date that control is achieved.
D) IFRS requires the non-controlling interest to be measured at fair value.

Question

Quizplus · Accepted Answer

Under IFRS, acquisition accounting, which includes identifying goodwill and remeasuring net assets to fair value, is applied only at the point control is achieved. Subsequent changes in ownership interest after control is obtained do not result in remeasurement of the entire investment.

Which One of the Following Statements Regarding IFRS and Accounting