Under IFRS 3, Business Combinations, which method must be used to account for business combinations?
A)Purchase method.
B)Acquisition method.
C)New entity method.
D)Pooling-of-interests method.

Question

Quizplus · Accepted Answer

Under IFRS 3, the only method allowed to account for business combinations is the acquisition method. The purchase method, new entity method, and pooling-of-interests method are not permitted under IFRS 3.

Under IFRS 3, Business Combinations, Which Method Must Be Used