Podcast
Questions and Answers
What is used as the discount rate when calculating the fair value of a deferred payment?
What is used as the discount rate when calculating the fair value of a deferred payment?
- Inflation rate
- Prime lending rate
- Savings account rate
- Borrowing rate (correct)
How are non-monetary assets like property, plant, and equipment treated in business combinations?
How are non-monetary assets like property, plant, and equipment treated in business combinations?
- Realizing a loss equal to carrying amount
- Excluding them from the transaction
- Realizing a gain or incurring a loss based on fair value (correct)
- Earning revenue equal to carrying amount
What is the best way to measure the fair value of liabilities undertaken in a business combination?
What is the best way to measure the fair value of liabilities undertaken in a business combination?
- Historical cost
- Future market value
- Book value
- Present value of future cash flows (correct)
In a business combination, if an acquirer issues its own shares as consideration, what should be determined about those shares?
In a business combination, if an acquirer issues its own shares as consideration, what should be determined about those shares?
When is the fair value of cash and cash equivalents easily determinable?
When is the fair value of cash and cash equivalents easily determinable?
What is excluded when calculating the fair value of liabilities undertaken in a business combination?
What is excluded when calculating the fair value of liabilities undertaken in a business combination?
What happens when contingent consideration is classified as an equity instrument?
What happens when contingent consideration is classified as an equity instrument?
How is goodwill calculated under PFRS 3 Revised?
How is goodwill calculated under PFRS 3 Revised?
What does non-controlling interest refer to in a subsidiary?
What does non-controlling interest refer to in a subsidiary?
Under PFRS 3 Revised, what is the valuation approach for identifiable tangible assets assumed?
Under PFRS 3 Revised, what is the valuation approach for identifiable tangible assets assumed?
What does 'previously held equity interest in the acquiree' refer to?
What does 'previously held equity interest in the acquiree' refer to?
How is deferred payment treated when contingent consideration is cash or other assets paid or owed?
How is deferred payment treated when contingent consideration is cash or other assets paid or owed?
When recognizing intangible assets, what test is used to determine if their fair value can be measured reliably?
When recognizing intangible assets, what test is used to determine if their fair value can be measured reliably?
How are liabilities recognized according to the text?
How are liabilities recognized according to the text?
What type of test is used to recognize contingent liabilities?
What type of test is used to recognize contingent liabilities?
In a business combination, what may lead to the recognition of contingent liabilities in the acquirer's records?
In a business combination, what may lead to the recognition of contingent liabilities in the acquirer's records?
What components make up the sum when applying the acquisition method for recognizing goodwill and gain on bargain purchase?
What components make up the sum when applying the acquisition method for recognizing goodwill and gain on bargain purchase?
How are identifiable assets and liabilities recognized in the acquisition method?
How are identifiable assets and liabilities recognized in the acquisition method?
