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Questions and Answers
What does NZ IFRS require the acquirer to do in a business combination?
What does NZ IFRS require the acquirer to do in a business combination?
- Recognize and measure identifiable assets, liabilities, and non-controlling interest
- Recognize and measure only identifiable assets and liabilities
- Recognize and measure identifiable assets, liabilities, non-controlling interest, and goodwill (correct)
- Recognize and measure goodwill only
What is the purpose of disclosing information in a business combination?
What is the purpose of disclosing information in a business combination?
- To enable users to evaluate the nature and financial effects of the business combination (correct)
- To confuse users about the financial effects of the business combination
- To hide the financial effects of the business combination
- To provide irrelevant information to users
What is the difference between goodwill and non-controlling interest in a business combination?
What is the difference between goodwill and non-controlling interest in a business combination?
- Goodwill is a liability while non-controlling interest is an asset
- Goodwill represents the ownership share of the acquirer, while non-controlling interest represents the ownership share of the acquiree held by the acquirer
- Goodwill represents the ownership share of the acquiree not held by the acquirer, while non-controlling interest represents the excess of the purchase price over the fair value of the identifiable assets acquired
- Goodwill represents the excess of the purchase price over the fair value of the identifiable assets acquired, while non-controlling interest represents the ownership share of the acquiree not held by the acquirer (correct)
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