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CA Final Ind AS 103 Business Combinations — practice questions — page 2

Explore 77 free Ind AS 103 Business Combinations questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 103 Business Combinations questions and exercises with answers

Showing questions 31–60 of 77.

A conditional right to get back consideration already paid is shown as what?Read the answer and worked solution →When control is gained in stages, the stake already held is revalued to what?Read the answer and worked solution →A's 30% in B: book Rs 40 lakh, now Rs 55 lakh. A gains control. Gain on old stake?Read the answer and worked solution →A owns 35% of B and later buys 40% more, thereby controlling B. This is called what?Read the answer and worked solution →Which event can hand an investor control without any consideration paid?Read the answer and worked solution →The valuation is unfinished at year-end after a deal. What amounts are reported?Read the answer and worked solution →Plant value rises Rs 80 to Rs 95 lakh in the window; goodwill was Rs 120 lakh. New goodwill?Read the answer and worked solution →Once the measurement period is over, the deal accounting may change only for what?Read the answer and worked solution →Measurement period changes are booked as if the accounting was complete on what date?Read the answer and worked solution →Lawyers' and advisers' fees paid to complete a takeover are treated how?Read the answer and worked solution →P pays sellers Rs 500 lakh cash and advisers Rs 12 lakh. Consideration transferred?Read the answer and worked solution →Which standards cover the cost of issuing shares or bonds to fund a takeover?Read the answer and worked solution →Which item is a separate transaction outside the acquisition accounting?Read the answer and worked solution →A takeover in effect settles an older supply contract between the two firms. The acquirer books what?Read the answer and worked solution →A franchise right reacquired at Rs 120 lakh has 6 years of contract left. Annual amortisation?Read the answer and worked solution →Later measurement of a contingent liability booked in a deal uses which amount?Read the answer and worked solution →After the deal date, an indemnification asset follows which basis?Read the answer and worked solution →An indemnification asset is removed from books at which point?Read the answer and worked solution →An acquirer places value on the skilled team it takes over. This value is shown where?Read the answer and worked solution →Which test makes an intangible asset identifiable in a business combination?Read the answer and worked solution →Value linked to contracts still under negotiation with prospects is included in what?Read the answer and worked solution →Receivables taken over are at fair value. Is an extra credit loss allowance booked on day one?Read the answer and worked solution →An acquired patent will only be shelved to block rivals. Its fair value assumes which use?Read the answer and worked solution →In a reverse acquisition, the legal acquirer is treated for accounting as what?Read the answer and worked solution →Which party usually issues its shares in a reverse acquisition?Read the answer and worked solution →What two elements must an integrated set contain to be a business?Read the answer and worked solution →A set of activities and assets can still be a business without which element?Read the answer and worked solution →A newco is set up solely to issue shares for a merger. Is it automatically the acquirer?Read the answer and worked solution →If a deal is mainly paid in cash, the usual acquirer is which party?Read the answer and worked solution →When a takeover is paid for mainly by swapping shares, which side is generally the acquirer?Read the answer and worked solution →

Worked practice questions

A conditional right to get back consideration already paid is shown as what?

  1. Equity
  2. An asset
  3. A provision
  4. Goodwill
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Correct answer: B. An asset

A refund right arising under a contingent consideration arrangement is shown as an asset.

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When control is gained in stages, the stake already held is revalued to what?

  1. Its original cost
  2. Its carrying amount
  3. Current fair value
  4. Share of net assets
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Correct answer: C. Current fair value

The acquirer remeasures its earlier stake to acquisition-date fair value and books the difference.

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A's 30% in B: book Rs 40 lakh, now Rs 55 lakh. A gains control. Gain on old stake?

  1. No gain arises
  2. Gain of Rs 55 lakh
  3. Gain of Rs 25 lakh
  4. Gain of Rs 15 lakh
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Correct answer: D. Gain of Rs 15 lakh

Fair value 55 less carrying amount 40 is a Rs 15 lakh gain, recognised in profit or loss or OCI as appropriate.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property