alleryStart learning →P hands sellers a vehicle with book value Rs 60 lakh and fair value Rs 90 lakh. Profit or loss effect?
AGain Rs 90 lakh
BGain Rs 60 lakh
CNo gain or loss
DGain Rs 30 lakh
Answer & Solution
Correct answer: D. Gain Rs 30 lakh
The transferred asset is remeasured to fair value and the Rs 30 lakh difference goes to profit or loss.
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?