An acquired disposal group is classified as held for sale on the acquisition date. It is measured at?
AFair value only
BFV less costs to sell
CDepreciated cost
DPrevious book value
Answer & Solution
Correct answer: B. FV less costs to sell
Held-for-sale assets are an exception and follow Ind AS 105, which uses fair value less costs to sell.
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?