AASB 3/IFRS 3 is relevant when accounting for a business combination that:
A) involves mutual entities.
B) results in the formation of a joint venture.
C) involves entities or businesses that are not investor owned.
D) results in an entity acquiring the net assets of another entity.

Question

Quizplus · Accepted Answer

AASB 3/IFRS 3 is relevant when an entity acquires the net assets of another entity. It provides guidance on how to recognize and measure the assets, liabilities, and any goodwill arising from the business combination.

AASB 3/IFRS 3 Is Relevant When Accounting for a Business