Under AASB 3/IFRS 3 Business Combinations, the required method of accounting for a business combination is the:
A) control method.
B) acquisition method.
C) purchase method.
D) combination method.

Question

Quizplus · Accepted Answer

The required method of accounting for a business combination under AASB 3/IFRS 3 is the acquisition method, which involves measuring and recognizing the assets acquired, liabilities assumed, and any non-controlling interest at the fair value at the acquisition date. This method also recognizes goodwill or gain or loss from bargain purchase arising from the acquisition.

Under AASB 3/IFRS 3 Business Combinations, the Required Method of Accounting