The consideration transferred im O Estimated amount O Transaction value O Acquisition date fair value
Q: Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets…
A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…
Q: The fair value of net assets is:
A: Given information is: Fair values: Cash = OMR 80,000 Receivables (Net) = OMR 90,000 Liabilities =…
Q: how is the acquisition cost of an asset determined when the asset is acquired in exchange for…
A: How is the acquisition cost of an asset determined when the asset is acquired in exchange for…
Q: How is goodwill or gain from bargain purchase computed? Group of answer choices a. The difference…
A: Solution How is goodwill or gain from bargain purchase computed Correct answer is option d) The…
Q: Purchasing power gain or loss results from: a. Monetary asset only b. Monetary liability only c.…
A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies".
Q: According to the historical cost principle, assets are measured at the exchange price at the time…
A: Introduction: As per the historical cost principle is one of basic accounting principle, is a…
Q: If the value implied by the purchase price of an acquired company exceeds the fair values of…
A: Goodwill on acquisition = Purchase consideration paid - Fair value of net identifiable assets…
Q: distinguish between current and non-current assets, and current and non-current liabilitie
A: Any asset which is convertible in terms of cash within a time duration of one year is a current…
Q: Research and development costs a. Are recorded as research and development assets. b. Are…
A: Research and development costs: Research and development costs refer to the expenditures spent on…
Q: 2. Goodwill and unrealized profit calculation Goodwill Fair value of consideration transferred Non…
A: Consolidation of Accounts: Consolidation of financial accounts refers to the act of merging or…
Q: Brand recognition is an example of O a. Intangible asset O b. Expenses O C. Tangible asset O d.…
A: Brand recognition is situation when the customers can easily identify the products of particular…
Q: Which of the following assets appears on the balance sheet at fair value? Equipment, Land,…
A: Fair value refers to the actual amount paid in an open market to purchase the assets. Fair value…
Q: Th e valuation technique under which assets are recorded at the amount that would be received in an…
A: There are many valuation technique like cost method, market value method, base stock method, present…
Q: evenue recognition under IFRS 15 is based on Transfer of title Payment of consideration Transfer…
A: Solution: Revenue recognition under IFRS 15 is based on "Transfer of risk and rewards of ownership".…
Q: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…
A: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…
Q: After recognition, exploration and evaluation assets are accounted for under the cost model…
A: There are two methods are prescribed by IAS 16 Property, Plant and Equipment for acccount for the…
Q: 22. Which of the following assumption provides support for measuring the property, plant, and…
A: The PPE includes the fixed assets as property, plant and equipment.
Q: one of the following is a definition of asset: a- a present economic resource controlled by the…
A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…
Q: An entity starts the capitalization of borrowing costs to the cost of a qualifying asset when *…
A: Borrowing costs are costs that are incurred for borrowing money for the purpose of acquisition,…
Q: Describe Expenditures Subsequent to Acquisition.
A: Definition: Property, plant, and equipment: These assets are long-lived economic resources which…
Q: In the statement of financial position, investment of a specific entity OA Can be classited as…
A: In statement of financial position, it includes Assets, Liabilities and Equity of the company are…
Q: Assets acquired ina lump-sum purchase are valued based on: a. Their assessed valuation. b. Their…
A: As per IAS 16, when more than one item of property, plant, and equipment is purchased for a…
Q: Describe the accounting treatment for costs subsequent to acquisition.
A: Costs subsequent to acquisition: It refers to those additional expenditures which are related to the…
Q: The cost of intangible asset acquired in business combination is recognized by entity in its book…
A: Intangible assets are those assets which have no physical existence in nature but recognition in…
Q: Which of the following term relates to Copyrights, Patents and Trademarks? O a. Investments O b.…
A: Intangible assets are those assets which do not have any physical existence and it's very difficult…
Q: ancing for an acquisition structu either an asset or stock acquisit
A: To explain the correct option as,
Q: goodwill amortization expensef
A: Goodwill amortization expense =Goodwill recorded/Useful life in years * Part of remaining months in…
Q: The entry to record transaction costs for financial assets measured at fair value through surplus or…
A: The correct answer for the above mentioned question is given in the following steps.
Q: 49. Recording assets at their acquisition cost (entry value), rather than at their net selling price…
A: Historical cost basis: It is the standard by which a business records the value of an asset on its…
Q: What is the requirement with respect to the allocation of the cost of a business acquisition? a.…
A: Acquisition method is used in all types of business acquisition.
Q: In a business combination, goodwill is defined as the excess of acquisition cost over the a.…
A: Goodwill is a form of intangible asset for the business which we cannot see or touch but one can…
Q: right of use asset
A: Correct Answer :- C Sale price
Q: goodwill or gain from bargain purchase computed
A: First option is wrong because non-controlling interest is not considered in determining the goodwill…
Q: a. Over what period of time should the cost of a patent acquired by purchase be amortized?b. In…
A: Intangible Assets: These are the long-term assets having no physical existence. However, the…
Q: explain the main different between acquisition method, interest pooling g method and the purchase…
A: Acquisition is one type of mergers and acquisitions, where pooling-of-interest method and purchase…
Q: The price that would be received to sell an asset or paid to transfer a liability in an orderly sale…
A: In accountancy, an asset can be defined as a business item used for the purpose of running business.…
Q: Previously held interest at the date of acquisition shall be measured at: O Acquisition cost O…
A: As per IFRS 3: Business combination previously held interest at the date of acquisition shall be…
Q: The amount due from or at the direction of the grantor is accounted for by the operator from the…
A: When the operator recieves a financial asset from the grantor, it is measured at fair value.
Q: Explain the nature of lump-sum purchases including the factor(s) to be considered and the…
A:
Q: The identifiable assets acquired and liabilities assumed in a business combination are generally…
A: Consolidation: It can be defined as the process of combining or acquiring many smaller corporations…
Q: tatement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the…
A: While Acquiring Assets and Liabilities Acquirer does not recognize contingent assets acquired in a…
Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…
A: When a company follows equity method when it has significant influence over such company.The…
Q: Actuarial (Remeasurement) gains and losses are reported as OCI as they occur using a. U.S. GAAP. b.…
A: Both US GAAP and IFRS requires to record acturial gains or losses through other comprehensive income…
Q: fair value (market-related value) efit obligation assets
A: The answer has been mentioned below.
Q: Under IFRS a. research and development expenditures are expensed in the period incurred. b. research…
A:
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- The identifiable assets acquired and liabilities assumed in a business combination are generally measured at: a. Acquisition-date fair values b. Previous carrying amounts c. Fair value less cost to sell d. CostWhich of the following is not considered in the determination of Total Assets after business determination? A. Book Value of the Acquirer's Total Assets B. Fair Value of the Acquiree's Total Assets C. Expenses that are actually paid in relation to business combination D. Contingent ConsiderationWhich of the following is not considered in the determination of Total Assets after business combination? Group of answer choices a.Book value of the acquirer’s total assets. b.Fair value of the acquiree’s total assets. c.Expenses that are actually paid in relation to business combination d.Contingent consideration
- Direct cost incurred in a business combination are A. CapitalizedB. ExpensedC. Capitalized, except for costs of issuing equity and debt instrumentsD. Expensed, except for costs of issuing equity and debt instrumentsIn a business combination, an acquirer's interest in the fair value of the net assets acquired exceeds the consideration transferred in the combination. Under PFRS 3 Business Combinations, the acquirer should A. recognize the excess immediately in profit or los B. recognize the excess immediately in other comprehensive income C. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in other comprehensive income D. reassess the recognition and measurement of the net assets acquired and the consideration transferred, then recognize any excess immediately in profit or lossGain on Bargain Purchase treated as other income in a business combination should be: a. Credited to the income account of both acquirer and acquire b. Credited to the share premium account of the acquirer c. Credited to a deferred credit account d. Credited to the income account of the acquirer
- Please concisely explain how the excess investment cost over book value is allocated. When is the intra-entity’s profits recognized on transfers between the investor and investee? What is the controlling interest percentage for a consolidated accounting financial statement?In a business combination achieved in stages, if the acquisition date fair value of the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities of the acquiree is higher than the aggregate of the (1) acquisition date fair value of the consideration transferred by the acquirer; (2) amount of noncontrolling interest measured at fair value or proportionate share; and (3) acquisition date fair value of acquirer's previously held equity interest in the acquire, the difference shall be accounted for by the acquirer in its consolidated statement of financial position as:A. GoodwillB. Deduction directly to retained earningsC. Expense as incurredD. Gain on bargain purchaseFor fi nancial assets classifi ed as available for sale, how are unrealized gains and losses refl ected in shareholders’ equity? C . Th ey are a component of accumulated other comprehensive income.
- In a business combination, an acquirer's interest in the fair value of the net assetsacquired exceeds the consideration transferred in the combination. Under PFRS3 Business Combinations, the acquirer should A. reassess the recognition and measurement of the net assets acquired and theconsideration transferred, then recognize any excess immediately in othercomprehensive income B. recognize the excess immediately in other comprehensive income C. recognize the excess immediately in profit or loss D. reassess the recognition and measurement of the net assets acquired and theconsideration transferred, then recognize any excess immediately in profit or lossWhich statement is true in relation to business combination achieved in stages? a. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in profit or loss. b. The pre-existing interest shall be remeasured at fair value with any resulting gain or loss recognized in retained earnings. c. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in other comprehensive income. d. The pre-existing interest shall not be remeasured.Acquisition accounting requires an acquirer and an acquirer to be identified for every business combination. Where a new entity (H) is created and two pre-existing entities, S and A, which of these entities will be designated as the acquirer? a. H b. S or A c. S d. A
