Which of the following does NOT constitute a Business Combination under IFRS 3?

Question

Quizplus · Accepted Answer

According to IFRS 3, a Business Combination is defined as a transaction or other event in which an acquirer obtains control of one or more businesses. In option A, A Corp purchases the net assets of B Corp, which clearly constitutes a business combination. In option C, A Corp acquires 51% of B Corp's voting shares for $1,000,000 in Cash, which also constitutes a business combination as it results in A Corp obtaining control of B Corp. In option D, even though the consideration is for future considerations, it still results in A Corp obtaining control of B Corp and hence constitutes a business combination. Option B, on the other hand, does not result in A Corp obtaining control of B Corp and hence does not constitute a business combination.

Which of the Following Does NOT Constitute a Business Combination