An entity shall determine whether a transaction or other event is a business combination by applying the definition in PFRS 3, which requires that: a. All of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination. b. All of the combining entities

Auditing: A Risk Based-Approach (MindTap Course List)
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ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
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Chapter6: Audit Evidence
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Problem 15CYBK
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An entity shall determine whether a transaction or other event is a business combination by applying the definition in PFRS 3, which requires that:

a. All of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination.
b. All of the combining entities transfer their net assets, or the owners of those entities transfer their equity interests, to a newly formed entity.
c. The assets acquired and the liabilities assumed constitute a business.
d. All of the above.
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