Question Tag: Acquirer Identification

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CR – April 2022 – L3 – Q4b – Business combinations and consolidation

Explain the reasons why it may be difficult to identify the acquirer in a business combination.

b) All business combinations are accounted for by the acquisition method, which involves identifying the acquirer. However, it might not be easy to identify the acquirer.

Required:
Explain TWO (2) reasons why it might be difficult to identify the acquirer.
(4 marks)

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CR – Nov 2023 – L3 – Q4b – Business combinations and consolidation

Outline factors to consider in determining the acquirer in a business combination according to IFRS 3.

b) Mmebusem Plc has been negotiating with Anansesem Plc for several months, and agreements have finally been reached for the two companies to combine. In considering the accounting for the combined entities, management realises that, in applying IFRS 3, an acquirer must be identified. However, there is a debate among the accounting staff as to which entity is the acquirer.

Required:

In accordance with IFRS 3: Business Combinations, outline FOUR (4) factors that should be considered in determining which entity is the acquirer. (5 marks)

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CR – April 2022 – L3 – Q4b – Business combinations and consolidation

Explain the reasons why it may be difficult to identify the acquirer in a business combination.

b) All business combinations are accounted for by the acquisition method, which involves identifying the acquirer. However, it might not be easy to identify the acquirer.

Required:
Explain TWO (2) reasons why it might be difficult to identify the acquirer.
(4 marks)

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Report an error

You're reporting an error for "CR – April 2022 – L3 – Q4b – Business combinations and consolidation"

CR – Nov 2023 – L3 – Q4b – Business combinations and consolidation

Outline factors to consider in determining the acquirer in a business combination according to IFRS 3.

b) Mmebusem Plc has been negotiating with Anansesem Plc for several months, and agreements have finally been reached for the two companies to combine. In considering the accounting for the combined entities, management realises that, in applying IFRS 3, an acquirer must be identified. However, there is a debate among the accounting staff as to which entity is the acquirer.

Required:

In accordance with IFRS 3: Business Combinations, outline FOUR (4) factors that should be considered in determining which entity is the acquirer. (5 marks)

Login or create a free account to see answers

Find Related Questions by Tags, levels, etc.

Report an error

You're reporting an error for "CR – Nov 2023 – L3 – Q4b – Business combinations and consolidation"

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