Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which of the following statements is true regarding the amortization of the AD?
Which of the following statements is true regarding the amortization of the AD?
- The amortization of the AD reduces the investment account and the investment income from associate (correct)
- The amortization of the AD increases the investment account and the investment income from associate
- The AD is not amortized in subsequent periods
- The AD is fully amortized in the first period
What happens to the carrying amount of the investment in the associate if the investment is found to be impaired?
What happens to the carrying amount of the investment in the associate if the investment is found to be impaired?
- It increases
- It decreases (correct)
- It remains the same
- It becomes zero
What is a business combination according to IFRS 3 Business Combinations?
What is a business combination according to IFRS 3 Business Combinations?
- A transaction where an acquirer obtains control of one or more businesses (correct)
- A transaction where an acquirer obtains control of one or more liabilities
- A transaction where an acquirer obtains control of one or more employees
- A transaction where an acquirer obtains control of one or more assets
Flashcards are hidden until you start studying
