BusCom 17 Items Quiz

1. What amount of goodwill will be reported?

• 0

• 23,000

• 43,000

• 58,000

2. What amount of total assets will be reported?

• 84,400

• 1,051,000

• 1,109,000

• 1,249,000

3. What is the amount recorded by ACME for the building?

• 110,000

• 20,000

• 80,000

• 100,000

What amount of goodwill or gain should be recognized?

• Gain of 30,000

• Gain of 60,000

• Goodwill of 30,000

• Goodwill of 60,000

In the January 1, 2022 consolidated balance sheet, the amount of goodwill reported should be:

• 0

• 76,000

• 95,000

• 156,000

In the December 31, 2022 consolidated balance sheet, the amount of non-controlling interest reported should be:

• 200,000

• 239.000

• 251,000

• 252.000

Control over an acquiree can be attained through which of the following?

• Acquisition of the acquiree assets

• Acquisition of the acquiree stock

• Either acquisition of the acquiree assets or stock

• Neither acquisition of the acquiree assets or stock

Under PFRS 3, contrary to PAS 37, what is the recognition principle of contingent liability assumed in a business combination?

• The acquirer shall recognize as of the acquisition date a contingent liability assumed in a business combination if it is a present obligation that arises from past events and its fair value can be measured reliably even only reasonably possible

• The acquirer shall recognize a contingent liability assumed in a business combination at the acquisition date only if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation

• The acquirer shall recognize a contingent liability assumed in a business combination at the acquisition date only if it is virtually certain that an outflow of resources embodying economic benefits will be required to settle the obligation

• The acquirer shall recognize a contingent liability assumed in a business combination at the acquisitio date only if it is remote that an outflow of resources embodying economic benefits will be required to settle the obligation

Given the following information, how is goodwill from a business combination computed under PFRS 3?

A = Consideration transferred

B = Non-controlling interest in net assets of subsidiary

C = Previously held equity interest

D = Fair value of net identifiable assets of subsidiary

% = Percentage of ownership acquired by the parent in the subsidiary

• A+B+C-D

• (A+C) (D x %)

• A-(D x %)

• (A+B)-[(D x %) - B]

Which of the following is not a business combination?

• Statutory amalgamation

• Joint venture

• A company's purchase of 100% of another company's net assets

• A company's purchase of 80% of another company's voting shares.