According to AASB 3 Business Combinations, the key principle relating to the disclosure of information about business combinations is to disclose information that:
A) does not give an advantage to the competitors of a consolidated group.
B) provides financial statement users with information about the parent entity only.
C) enables financial statement users to evaluate the nature and financial effect of business combinations that occurred during the reporting period.
D) enables the preparation of the consolidated financial statements in the most cost-effective manner.

Question

Quizplus · Accepted Answer

The key principle relating to the disclosure of information about business combinations is to enable financial statement users to evaluate the nature and financial effect of business combinations that occurred during the reporting period. This principle helps investors and stakeholders understand the impact of business combinations on the financial statements and make informed decisions. Options A, B, and D are incorrect as they do not reflect the key principle of disclosure under AASB 3.

According to AASB 3 Business Combinations, the Key Principle Relating