- 4 Marks
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.
Question
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)
Find Related Questions by Tags, levels, etc.
- Tags: Acquirer Identification, Acquisition Method, IFRS 3
- Level: Level 3
- Topic: Business combinations and consolidation
- Series: APR 2022
