An entity shall determine whether a transaction or other event is a business com applying the definition in PFRS 3, which requires that: All of the combining entities or businesses are ultimately controlled by the same party or partie and after the business combination. All of the combining entities transfer their net assets, or the owners of those entities transfer the interests, to a newiy formed entity. O The assets acquired and the liabilities assumed constitute a business. O All of the above.
An entity shall determine whether a transaction or other event is a business com applying the definition in PFRS 3, which requires that: All of the combining entities or businesses are ultimately controlled by the same party or partie and after the business combination. All of the combining entities transfer their net assets, or the owners of those entities transfer the interests, to a newiy formed entity. O The assets acquired and the liabilities assumed constitute a business. O All of the above.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter6: Audit Evidence
Section: Chapter Questions
Problem 15CYBK
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11
![An entity shall determine whether a transaction or other event is a business combination by
applying the definition in PFRS 3, which requires that:
All of the combining entities or businesses are ultimately controlled by the same party or parties both before
and after the business combination.
All of the combining entities transfer their net assets, or the owners of those entities transfer their equity
interests, to a newly formed entity.
O The assets acquired and the liabilities assumed constitute a business.
O All of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16aef1ed-7196-4c00-9fb2-59032580bfc2%2F3b2cfa88-8342-46d4-a319-8e19fa3e525b%2Fvmyzx7d_processed.png&w=3840&q=75)
Transcribed Image Text:An entity shall determine whether a transaction or other event is a business combination by
applying the definition in PFRS 3, which requires that:
All of the combining entities or businesses are ultimately controlled by the same party or parties both before
and after the business combination.
All of the combining entities transfer their net assets, or the owners of those entities transfer their equity
interests, to a newly formed entity.
O The assets acquired and the liabilities assumed constitute a business.
O All of the above.
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