Entity A acquires all the inputs and processes of Entity B. However, Entity A later disposes of the processes of Entity B to merge the inputs of Entity A with its own processes. Entity A should account for this transaction as a business combination.

Question

Quizplus · Accepted Answer

This transaction should be accounted for as a business combination because Entity A acquired inputs and processes (even though it later disposed of the processes), which meets the definition of a business combination under accounting standards such as IFRS 3 Business Combinations.

Entity a Acquires All the Inputs and Processes of Entity