Which of the following statements about IFRS 3, Business Combinations is true?
A)IFRS 3 allows organizations to use either the parent-company method or the entity method.
B)IFRS 3 allows organizations to use either the parent-company extension method or the entity method.
C)IFRS 3 allows organizations to use either the parent-company method or the parent-company extension method.
D)IFRS 3 allows organizations to use either the parent-company method, the parent-company extension method, or the entity method.

Question

Quizplus · Accepted Answer

IFRS 3 requires the use of the acquisition method, which is also known as the entity method, and does not allow the use of the parent-company method or the parent-company extension method.

Which of the Following Statements About IFRS 3, Business Combinations