A common approach to common control

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

  1. How are businesses under common control currently accounted for?

  2. If an subsidiary within a group acquires another entity from outside of the group, how should this be accounted for in the consolidated financial statements?

  3. Which of these describes the alternative treatment to the acquisition method which is currently used in accounting for BCUCC?

  4. Which, if any, of the following situations would be BCUCC? Statement 1: Entity A acquires entity B from company P, which owns both A and B, or Statement 2: Entity A acquires entity C from entity B. Company P owns both entities A and B

  5. If the receiving entity is wholly-owned, which method does the IASB state to follow in its preliminary view?

  6. Under the proposals in the acquisition method, how would a transaction resulting in negative goodwill be recorded?

  7. Which of the following outlines the proposed way forward for the project?

  8. Which, if any, of the following statements represent a situation where the acquisition method would be applied? Statement 1 - A receiving entity has non-controlling shareholders and is publicly listed, or Statement 2 - A receiving entity is unlisted but has non-controlling interests that object to the book-value method

  9. What value is the IASB proposing to be used under the book-value approach?

  10. Which, if any, of the following statements are true? Statement 1 - The IASB are proposing a change to IFRS 3 Business Combinations, or Statement 2 - The IASB are looking to issue a new IFRS in respect of this

1 Unit