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) results in an entity acquiring the net assets of another entity.
D) involves entities or businesses that are not investor owned.

Question

Quizplus · Accepted Answer

AASB 3/IFRS 3 is relevant when an entity acquires the net assets of another entity. This may involve an acquisition of another business or an acquisition of net assets that constitutes a business.

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