Under AASB 3/IFRS 3 the method of accounting for a business combination is the:
A) joint venture method.
B) purchase method.
C) market value method.
D) acquisition method.

Question

Quizplus · Accepted Answer

AASB 3/IFRS 3 prescribes the acquisition method as the appropriate method of accounting for business combinations. This method requires the acquirer to recognize and measure the assets acquired, liabilities assumed, and any non-controlling interest in the acquiree at their fair values at the acquisition date. It also requires the acquirer to recognize any goodwill arising from the acquisition.

Under AASB 3/IFRS 3 the Method of Accounting for a Business