Suncorp Limited acquired a 15% interest in Milton Pty Ltd on 1 January 2014. On 15 September 2014 it acquired an additional 25% interest, and on 15 March 2015 a further 15%. Under AASB 3/IFRS 3, a business combination occurs on:

Question

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A business combination occurs when an entity gains control over another entity. Suncorp Limited gained control over Milton Pty Ltd on 15 March 2015 when its total interest reached 55%, which is typically considered a controlling interest.

Suncorp Limited Acquired a 15% Interest in Milton Pty Ltd