- 5 Marks
CR – July 2024 – L3 – Q4b – Business combinations and consolidation
Explanation on how an acquirer can obtain control of an acquiree without transferring consideration.
Question
An acquirer may obtain control of an acquiree without transferring consideration. In such cases, IFRS 3 requires an acquirer to be identified, and the acquisition method to be applied.
Required:
Briefly explain how this situation may come about and highlight the appropriate consolidation treatment required.
Find Related Questions by Tags, levels, etc.
- Tags: Acquisition, Business Combinations, Control without Consideration, IFRS 3
- Level: Level 3
- Topic: Business combinations and consolidation
- Series: JULY 2023
Report an error