A common approach to common control

How are businesses under common control currently accounted for?

Using IFRS 10

No IFRS guidance exists currently

Using IFRS 3

Using IAS 27

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?

Under the principles being discussed in the BCUCC project

Under IAS 16

Using IFRS 3

Under IFRS 9

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

The cost method

The historical method

The amortised cost method

The book-value method

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

Neither statement

Statement 2 only

Statement 1 only

Both statements

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

Acquisition method

Replacement cost method

Book-value method

None of the above

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

As a negative asset

As a contribution in equity

It would not be recognised

As a gain in the statement of profit or loss

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

All entities to use the acquisition method

All entities to use the book-value method

Entities to determine their own accounting policy

Different methods to be used depending on the situation

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

Both statements are correct

Statement 2 only is correct

Statement 1 only is correct

Neither statement is correct

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

The controlling entity's assessment of the replacement cost

None of the these

The carrying amount of the net assets in the transferred entity

The carrying amount of the net assets in the consolidated financial statements

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

Statement 2 only

Both statements

Statement 1 only

Neither statement

A common approach to common control

How are businesses under common control currently accounted for?

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?

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

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

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

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

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

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

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

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Our sites

Useful links

Using this site

Contact us

Planned system updates