Real-world consolidations

How should net assets be recorded at acquisition in consolidated financial statements?

At cost

At fair value

At present value

At the lower of cost or NRV

What is the key term in deciding whether a company is to be recorded as a subsidiary or not?

None of the above

Control

Significant influence

Equity

Which, if any, of the following statements are true? Statement 1, Control requires the ability to exercise power, or Statement 2, Control isn’t simply defined as owning the majority of shares.

Statement 1 only

Both statements

Neither statement

Statement 2 only

Which of these is identified as a problem associated with goodwill impairment?

It is too extreme

It is less reliable than amortisation

It is done too little, too late

All of the above

Which of the following items is true?

Internally generated intangible assets will be recorded at fair value in accordance with IFRS 3

Internally generated intangible assets can never be recognised on acquisition

Inventories acquired in a business combination must not be recognised at fair value

Contingent consideration on an acquisition is only disclosed and not recognised

Which standard covers consolidations?

IFRS 16

IFRS 3

IFRS 15

IFRS 38

Which of the following is being proposed in terms of the business combinations project?

Additional disclosures over strategic acquisitions

Both of the above

Review of subsequent performance against acquisition-date objectives and targets

Neither of the above

Which of of the following statements is true regarding non-controlling interests? Statement 1, Non-controlling interests can be recorded at fair value under IFRS 3, or Statement 2, Non-controlling interests can be recorded at the proportion of net assets under IFRS 3.

Both statements are correct

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

Which of the following items does not currently need an annual impairment review?

An intangible asset with a life of 10 years

Goodwill

An intangible asset not yet ready for use

An intangible asset with an indefinite life

Which, if any, of the following statements is correct? Statement 1, Non-controlling interests can be recorded in liabilities in certain circumstances, or Statement 2, The fair value of non-controlling interest does not involve significant judgement.

Statement 2 only is correct

Neither statement is correct

Statement 1 only is correct

Both statements are correct

Real-world consolidations

How should net assets be recorded at acquisition in consolidated financial statements?

What is the key term in deciding whether a company is to be recorded as a subsidiary or not?

Which, if any, of the following statements are true? Statement 1, Control requires the ability to exercise power, or Statement 2, Control isn’t simply defined as owning the majority of shares.

Which of these is identified as a problem associated with goodwill impairment?

Which of the following items is true?

Which standard covers consolidations?

Which of the following is being proposed in terms of the business combinations project?

Which of of the following statements is true regarding non-controlling interests? Statement 1, Non-controlling interests can be recorded at fair value under IFRS 3, or Statement 2, Non-controlling interests can be recorded at the proportion of net assets under IFRS 3.

Which of the following items does not currently need an annual impairment review?

Which, if any, of the following statements is correct? Statement 1, Non-controlling interests can be recorded in liabilities in certain circumstances, or Statement 2, The fair value of non-controlling interest does not involve significant judgement.

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