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CA Final Ind AS 103 Business Combinations — practice questions — page 3

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 61–77 of 77.

In a share swap, the party paying a premium over the other's fair value is typically what?Read the answer and worked solution →With three or more combining entities, which clue helps name the acquirer?Read the answer and worked solution →A takeover completes after year-end but before accounts are approved. What does the standard demand?Read the answer and worked solution →Common control means the same party controls the combining entities at which times?Read the answer and worked solution →Two group companies owned by the same promoter merge. Which method applies?Read the answer and worked solution →Under pooling, assets of the merging group entities are brought in at what?Read the answer and worked solution →Comparatives in a common control merger restate from?Read the answer and worked solution →After pooling, the transferor's General Reserve appears as what?Read the answer and worked solution →Shares Rs 80 lakh plus cash Rs 10 lakh paid; transferor capital Rs 120 lakh. Rs 30 lakh gap is?Read the answer and worked solution →Does a large minority shareholding in a group company change its common control status?Read the answer and worked solution →In pooling, the transferor's retained earnings balance is handled how?Read the answer and worked solution →Which item does Ind AS 103 leave out of its scope?Read the answer and worked solution →Goodwill in Ind AS 103 is an asset that represents what?Read the answer and worked solution →What does Ind AS 103 add that IFRS 3 lacks on group reorganisations?Read the answer and worked solution →Fair value is an exit price in an orderly deal between which parties?Read the answer and worked solution →Vested acquiree awards that the acquirer does not replace become part of what?Read the answer and worked solution →Acquiree's suit: present obligation, Rs 12 lakh fair value, payment unlikely. Entry?Read the answer and worked solution →

Worked practice questions

In a share swap, the party paying a premium over the other's fair value is typically what?

  1. The acquiree
  2. The transferor
  3. A joint venturer
  4. The acquirer
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Correct answer: D. The acquirer

Paying a premium over pre-combination fair value is an indicator of being the acquirer.

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With three or more combining entities, which clue helps name the acquirer?

  1. Which started the deal
  2. Which is the oldest
  3. Which pays most tax
  4. Which has most reserves
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Correct answer: A. Which started the deal

Multi-party deals consider which entity initiated the combination along with relative size.

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A takeover completes after year-end but before accounts are approved. What does the standard demand?

  1. No mention needed
  2. Restate the year
  3. Disclose the deal
  4. Book the goodwill
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Correct answer: C. Disclose the deal

Combinations after the period end but before approval fall within the disclosure objective, not the recognition requirements.

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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