alleryStart learning →The price paid for a non-business asset group is split across the assets using what?
ARelative fair values
BSeller's book values
CEqual portions
DReplacement costs
Answer & Solution
Correct answer: A. Relative fair values
The standard allocates the cost of such a group to individual assets and liabilities by their relative fair values at the purchase date.
Keep practising Ind AS 103 Business Combinations
Browse all Ind AS 103 Business Combinations questions for CA Final, or explore more Financialreporting topics.
Related questions
Acquiree's suit: present obligation, Rs 12 lakh fair value, payment unlikely. Entry?Vested acquiree awards that the acquirer does not replace become part of what?Fair value is an exit price in an orderly deal between which parties?What does Ind AS 103 add that IFRS 3 lacks on group reorganisations?Goodwill in Ind AS 103 is an asset that represents what?Which item does Ind AS 103 leave out of its scope?In pooling, the transferor's retained earnings balance is handled how?Does a large minority shareholding in a group company change its common control status?