Question bank — IFRS 3 — Business Combinations
121 questions in FR/EN/ES, scored by the real scoring engine.
Scope of IFRS 3 and the acquisition method4 questions
- The formation of a joint arrangement (as defined in IFRS 11) is a business combination that the entity accounts for using the acquisition method of IFRS 3.True / falseL1
- Which of the following transactions undertaken by Orféa SA is excluded from the scope of IFRS 3?Single choiceL1
- A colleague summarises the scope of IFRS 3 for a business combination file. Which statement in the summary is wrong?Single choiceL1
- Orvane SA obtains control of a set of assets and liabilities. Where does the IFRS 3 analysis start?Single choiceL1
Business combinations under common control2 questions
- Two subsidiaries controlled by the same parent both before and after their combination form a combination under common control, outside the scope of IFRS 3, provided that this common control is not transitory.True / falseL1
- Two companies, Nacre SA and Opale SA, are owned in equal parts by Mr Arnaud and Ms Bellec, who exercise their control together under a contractual arrangement. Nacre and Opale merge. Case assumption: before and after the transaction this group of individuals controls the whole, and that control is not transitory. What follows under IFRS 3?Single choiceL2
Formation of a joint arrangement1 question
Asset acquisition or business combination3 questions
- Maréchal SA buys an office building let to several tenants, without taking over any staff or management process. Case assumption: management has concluded that this set is not a business. How is the transaction treated under IFRS 3?Single choiceL1Variant
- Which statements about the acquisition of a group of assets are correct? More than one answer is possible.Multiple choiceL2
- Carbo SA acquires three identical machines from a bankrupt manufacturer, without taking over any employees, customer contracts or production process. Case assumption: management concludes that this set is not a business. What consequence does it draw under IFRS 3?Single choiceL2Variant
Inputs, processes and outputs of a business3 questions
- For an acquired set to be a business, it must already generate outputs (revenue) at the acquisition date.True / falseL1
- Berlue SA acquires machinery, patents and a team that operates them; no product has been sold yet. Which statements are correct? More than one answer is possible.Multiple choiceL2
- Lumen SA acquires an online sales platform: website, customer database, servers, and a development and support team. The platform's revenue is still nil (launch planned). Case assumption: the team operates the servers and the database. Which reading is consistent with the definition of a business?Single choiceL2
Substantive process4 questions
- Under the definition of a business, what must the acquired set of activities and assets include at a minimum?Single choiceL1
- Cobalt SA acquires Pistil SA, a biotechnology company in development: laboratories, patents and an organised team of researchers that develops the products. No product is sold yet. Case assumption: the team is critical to the ability to turn the acquired patents into outputs. What does Cobalt conclude about the process?Single choiceL2
- Delta SA acquires Presto, a printing works: machines and framework contracts with customers that generate recurring revenue; no employee is taken over. Delta's management argues that Presto is a business “because the revenue continues”. Write a short note concluding on this reasoning, distinguishing the facts of the case, the rule and professional judgement.JudgmentL3
- Rivel SA acquires a production line for optical lenses that already generates sales, without taking on any employees. Judgement retained in the case: the acquired manufacturing process contributes significantly to the ability to continue producing outputs and could not be replaced without significant cost, effort or delay. Is the acquired process substantive?Single choiceL3
The optional concentration test2 questions
- The acquirer may choose, business combination by business combination, whether or not to apply the concentration test: its application is optional.True / falseL1
- Hexa SA acquires an office building (land and building) let to one tenant, together with a property management contract. It elects to apply the concentration test. Case assumption: Hexa judges that substantially all of the fair value of the gross assets acquired is concentrated in the building. What does it conclude?Single choiceL3
Identifying the acquirer through control3 questions
- When the business combination is effected by issuing securities, the entity that issues the securities is identified as the acquirer without any need to analyse control.True / falseL1
- For each business combination, one of the combining entities must be identified as the acquirer. On what basis is this identification made in the first place?Single choiceL1
- Mistral SA acquires 90% of the voting rights of Zéphyr SA, paying in cash. Zéphyr is larger than Mistral in assets and revenue. Case assumption: under the IFRS 10 guidance, Mistral obtains control of Zéphyr. A trainee proposes naming Zéphyr as the acquirer because it is the larger. How should you answer?Single choiceL2
Indicators of the acquirer2 questions
- The guidance on control does not clearly indicate the acquirer. Which factors are among the additional guidance to consider? More than one answer is possible.Multiple choiceL2
- Aurèle SA and Brisac SA merge by exchanging shares; the IFRS 10 guidance does not clearly indicate the acquirer. The former owners of Aurèle hold 55% of the voting rights of the combined entity, but the board is split equally and the chief executive comes from Brisac, whose revenue is higher. Write a short note concluding on the acquirer, distinguishing the facts of the case, the rule and professional judgement.JudgmentL3
The acquisition date3 questions
- Under IFRS 3, what is the acquisition date of a business combination?Single choiceL1
- The acquisition date can precede the closing date of the transaction, for example when a written agreement gives the acquirer control earlier.True / falseL1
- Quasar SA signs the agreement to acquire Pavot SA on 15 November. The price and the shares are transferred (closing) on 20 December. Case assumption: a written agreement provides that Quasar directs Pavot's activities from 1 December, and the relevant facts and circumstances confirm that it has control on that date. Quasar's reporting period ends on 31 December. What is the acquisition date?Single choiceL2
The recognition principle4 questions
- At the acquisition date, how does the acquirer recognise the identifiable assets acquired and the liabilities assumed?Single choiceL1
- Which statements about the recognition of a business combination at the acquisition date are correct? More than one answer is possible.Multiple choiceL2
- In Klaxon SA's purchase price allocation file, the analyst did not recognise the acquiree's trademark, on the ground that it does not appear in the acquiree's balance sheet. What is the error in this reasoning?Single choiceL2
- An asset that meets, at the acquisition date, the definition of an asset in the Conceptual Framework is recognised in applying the acquisition method, even if it results from a separate transaction concluded with the former owners of the acquiree.True / falseL2
Classification and designation at the acquisition date2 questions
- At the acquisition date, on what basis does the acquirer classify or designate the identifiable assets acquired and the liabilities assumed, for example a financial instrument?Single choiceL2
- Prima SA acquires Dolce SA, which holds a loan that Dolce originally classified in an IFRS 9 category based on its own management practices. Case assumption: at the acquisition date, Prima's existing conditions and management practices lead, under IFRS 9, to a classification different from Dolce's. Which classification does Prima adopt in the consolidated financial statements?Single choiceL3
Identifiable intangible assets2 questions
- Under the contractual-legal criterion, which of these intangible assets of the acquiree is identifiable?Single choiceL2
- Vega Santé SA acquires an engineering firm. Among its intangible assets are framework contracts signed with twelve customers, not transferable without the customers' agreement; and a list of prospect contacts with no contractual commitment, which the firm has never sold but for which exchange transactions exist in the sector. Write a short note concluding on the identification of each, distinguishing facts of the case, rule and professional judgement.JudgmentL3
The fair value principle and identifiable net assets3 questions
- To determine goodwill, the identifiable assets acquired and the liabilities assumed are measured at their fair value at the acquisition date, subject to exceptions.True / falseL1
- On 30 June, Cirque SA acquires 100% of Brume SA. At that date, Brume's identifiable assets have a fair value of … and its liabilities assumed a fair value of …; its book equity is …. Case convention: the fair values are case data; no deferred tax or contingent liability is to be taken into account. Calculate the identifiable net assets measured under the acquisition method.CalculationL2
- Ibis SA acquires 100% of Sylve SA for consideration transferred of 5,500,000. A Sylve patent is recorded at 1,200,000 in its accounts; the acquirer's valuer estimates it at 1,800,000 at the acquisition date, using a technique based on future cash flows, for lack of an active market. The rest of Sylve's identifiable net assets, measured at fair value, is 3,000,000. Write a short note concluding on the amount of goodwill, distinguishing facts of the case, rule and professional judgement.JudgmentL3
Contingent liabilities assumed3 questions
- In a business combination, the acquiree is the defendant in a lawsuit. At the acquisition date, it is a present obligation arising from past events whose fair value can be measured reliably; an outflow of resources is, however, not probable. What treatment does the acquirer apply?Single choiceL2
- In a business combination, Orme SA assumed a contingent liability (a guarantee given to customers) recognised at … at the acquisition date. At the reporting date, the amount determined under IAS 37 is … and the cumulative income recognised since the acquisition under IFRS 15 in respect of this guarantee is …. Case convention: the guarantee is not within IFRS 9. Calculate the subsequent measurement of the contingent liability.CalculationL3
- At the acquisition date, Rhône SA assumes a contingent liability (a dispute with a customer): it is a present obligation arising from past events, whose fair value, reliably measured, is …. Case convention: the entry is made at business combination level, against goodwill. Record the entry recognising the contingent liability assumed.Journal entryL3
Liabilities within IAS 37 or IFRIC 211 question
Deferred taxes in a business combination3 questions
- On acquiring Aubrac SA, a building is recognised at a fair value of …; its tax base remains …. Case convention: the applicable tax rate is …, and the difference is a taxable temporary difference, fully recognised. Calculate the deferred tax liability recognised in the business combination.CalculationL2
- At the acquisition date, Garonne SA recognised a machine of the acquiree at a fair value … above its tax base. Case convention: the applicable tax rate is …, the difference is a taxable temporary difference and the entry is made at business combination level, against goodwill. Record the deferred tax entry.Journal entryL3
- In a purchase price allocation file, the analyst at Lys SA notes a fair value uplift of 400,000 on an acquired building whose tax base is lower, but recognises no deferred tax and calculates goodwill on that basis. What is the error?Single choiceL2
Employee benefits acquired1 question
Indemnification assets2 questions
- On acquiring Sorgue SA, the former owners contractually agree to indemnify the acquirer for a tax dispute: the liability recognised is … and the indemnity is contractually capped at …. Case convention: recoverability of the indemnity is taken for granted. Calculate the indemnification asset.CalculationL3
- The former owners of Arve SA contractually indemnify the acquirer in respect of an uncertainty about a particular liability of the acquiree. How does the acquirer treat this indemnity at the acquisition date?Single choiceL3
Leases in which the acquiree is the lessee1 question
Replacement share-based payment awards1 question
Assets held for sale1 question
Insurance contracts acquired1 question
Measuring the non-controlling interest3 questions
- The choice between fair value and the proportionate share of identifiable net assets to measure the non-controlling interest is a single policy, applying to all of the entity's business combinations.True / falseL1
- On 1 April, Seine SA acquires 70% of Marne SA. Marne's identifiable net assets, measured under IFRS 3, are …. The other shareholders hold … of the capital. Case convention: Seine chooses, for this business combination, to measure the non-controlling interest at its proportionate share of identifiable net assets. Calculate the non-controlling interest at the acquisition date.CalculationL2
- Rhin SA carried out two business combinations in the year: Aube SA (listed, with a price available for the minority shareholders) and Braise SA (unlisted). Rhin's accounting manual requires the proportionate share “for all business combinations”. Write a short note concluding on this policy, distinguishing facts of the case, rule and professional judgement.JudgmentL3
Components of the non-controlling interest1 question
Effect of the choice on goodwill3 questions
- Vienne SA acquires 80% of Cèdre SA for consideration transferred of …. Cèdre's identifiable net assets, measured under IFRS 3, are …. The fair value of the … non-controlling interest is …. Calculate the goodwill attributable to the non-controlling interest, i.e. the difference between goodwill calculated with that interest at fair value and goodwill calculated with that interest at its proportionate share.CalculationL2Variant
- For a business combination in which the non-controlling interest is measured at the proportionate share, the analyst at Hêtre SA calculates goodwill as: consideration transferred less identifiable net assets. What is the error in this calculation?Single choiceL2
- Isère SA acquires 75% of Tilleul SA, paying … in cash. At the acquisition date, Tilleul's identifiable assets have a fair value of … and its liabilities assumed …. Case convention: Isère measures the 25% non-controlling interest at its fair value of …; the entry is made at business combination level. Record the acquisition entry.Journal entryL3Variant
Measuring goodwill3 questions
- Which formula gives the goodwill of a business combination?Single choiceL1
- Allier SA acquires 80% of Doux SA for consideration transferred of …. Case convention: the non-controlling interest is measured at … and Doux's identifiable net assets, measured under IFRS 3, are …; there is no previously held interest. Calculate goodwill.CalculationL2
- Plaine SA acquires 100% of Sillon SA, paying … in cash. At the acquisition date, Sillon's identifiable assets have a fair value of … and its liabilities assumed …. Case convention: the entry is made at business combination level; there is no non-controlling interest or previously held interest. Record the acquisition entry.Journal entryL3
Purchase price allocation3 questions
- Orne SA acquires 100% of Sèvre SA for 5,000,000. Sèvre has assets with a carrying amount of 4,000,000, measured at a fair value of 4,900,000, and liabilities assumed of 1,500,000 (carrying amount and fair value identical). Case convention: No deferred tax or particular item is to be considered. What is goodwill?Single choiceL2
- Zénith SA acquires 80% of Kora SA for consideration transferred of …. At the acquisition date, Kora's identifiable assets have a fair value of … and its liabilities assumed …; a deferred tax liability of … and a recognised contingent liability of … are to be added. Case convention: Zénith measures the 20% non-controlling interest at its fair value of …. Calculate goodwill.CalculationL3
- Zircon SA acquires 75% of Onyx SA for consideration transferred of 9,000,000, the non-controlling interest being measured at its fair value of 2,900,000. Onyx's net book value is 5,200,000. The fair value remeasurements concern an unrecorded trademark (1,500,000), unrecorded contractual customer relationships (900,000) and land (+400,000); deferred tax is 25% of these remeasurements; a contingent liability of 150,000, with no deferred tax, is recognised. Case convention: the fair values and the tax rate are case data. Write a note concluding on goodwill, distinguishing facts of the case, rule and professional judgement.JudgmentL4
Bargain purchase3 questions
- On 1 July, Alpe SA acquires 100% of Dune SA for …. Dune's identifiable net assets, measured under IFRS 3, are …. Case assumption: after checking the identification of all assets and liabilities and reviewing their measurement, the excess remains; there is no non-controlling interest or previously held interest. Calculate the gain on a bargain purchase recognised in profit or loss.CalculationL2Variant
- The net amount of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the non-controlling interest and the previously held interest. Which statements are correct? More than one answer is possible.Multiple choiceL2
- Cassis SA acquires 100% of Menthe SA, paying … in cash. At the acquisition date, Menthe's identifiable assets have a fair value of … and its liabilities assumed …. Case assumption: the check of the identification of the items and the review of their measurement have been carried out, and the excess remains. The entry is made at business combination level. Record the acquisition entry.Journal entryL3Variant
Reassessment before any gain3 questions
- In a business combination file, identifiable net assets exceed the price paid, and the analyst at Frêne SA immediately recognises the excess as a gain, without further work. What is the error?Single choiceL2
- Éole SA acquires 100% of Gave SA for 4,000,000. The initially measured identifiable net assets are 4,300,000, an excess of 300,000. The review of measurements, carried out before any gain, reveals an omitted liability assumed of 140,000 and an asset overstated by 60,000. What gain on a bargain purchase does Éole recognise?Single choiceL3
- Fava SA acquires 100% of Loup SA for 7,800,000. The allocation team measures identifiable net assets at 9,100,000, an excess of 1,300,000 over the price. Management wants to recognise a gain of 1,300,000 immediately “since the price obtained is advantageous”. Write a short note concluding on this request, distinguishing facts of the case, rule and professional judgement.JudgmentL3
Measuring the consideration transferred3 questions
- The consideration transferred is measured at fair value at the acquisition date; it adds the fair values of the assets transferred by the acquirer, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the acquirer.True / falseL1
- To acquire Verger SA, Colline SA pays … in cash, issues shares with a total nominal value of … and a fair value at the acquisition date of …, and undertakes to pay … to the former owners in one year (fair value of that undertaking at the acquisition date). It also pays … of advisory fees. Calculate the consideration transferred.CalculationL2
- Pivoine SA acquires 100% of Roseau SA by paying … in cash and issuing shares whose fair value at the acquisition date is …. Roseau's identifiable assets have a fair value of … and its liabilities assumed …. Case convention: the entry is made at business combination level, the shares issued being credited to share capital and premium. Record the acquisition entry.Journal entryL2
Contingent consideration at the acquisition date3 questions
- On acquiring Prairie SA, Source SA undertakes to pay additional consideration depending on the next year's profit: … with a probability of …, … with a probability of … and … with a probability of …. Case convention: scenarios and probabilities are case data; probability weighting is not the only method of estimating fair value, and the calculation requested is before discounting. Calculate the expected value of the contingent consideration.CalculationL2
- On acquiring Étang SA, Rivage SA pays … in cash and undertakes to pay … in … if an activity target is met. Case convention: the fair value of this contingent consideration is estimated by discounting the payment, assumed certain in the case, at the rate of … (case data, with no probability weighting). Calculate the consideration transferred at the acquisition date.CalculationL3
- In the acquisition of Aubépine SA, the acquirer undertakes to pay … in … if a sales target is met; the obligation is classified as a liability. Case convention: its fair value is estimated by discounting that payment, assumed certain, at the rate of … (case data), and the entry is made at business combination level, against goodwill. Record the entry recognising the contingent consideration.Journal entryL3
Classifying contingent consideration3 questions
- In a business combination, the acquirer undertakes to pay additional consideration if the acquiree meets an activity target. How does it classify this obligation to pay contingent consideration?Single choiceL2
- The analyst at Ormeau SA classified the contingent consideration of a business combination as equity, on the ground that settlement is to be in the acquirer's shares, without further analysis. What is the error?Single choiceL2
- Teck SA acquires Nova SA. The agreement provides for additional consideration: if Nova's revenue exceeds a target, Teck will deliver to the former owners a number of shares set to reach a value determined at the time of settlement. Write a short note concluding on the classification of this obligation and on its subsequent measurement, distinguishing facts of the case, rule and professional judgement.JudgmentL3
Subsequent measurement of contingent consideration3 questions
- At the acquisition date of Cormier SA, the contingent consideration classified as a liability has a fair value of …. At the reporting date, its fair value is …, the increase resulting from better earnings prospects that arose after the acquisition date. Case assumption: the change does not come from information about facts existing at the acquisition date. Calculate the change in fair value to be recognised in profit or loss.CalculationL2Variant
- After the acquisition date, how does the acquirer treat contingent consideration? More than one answer is possible.Multiple choiceL2
- The additional consideration owed by Lilas SA to the former owners of Mûre SA, indexed to future sales, is classified as a liability. Its fair value was … at the acquisition date; it is … at the reporting date, after better commercial performance by Mûre since the combination. Record the remeasurement entry at the reporting date.Journal entryL3Variant
Acquisition-related costs3 questions
- The legal advisory fees paid by the acquirer to carry out the business combination are part of the consideration transferred and are therefore included in goodwill.True / falseL1Variant
- To acquire Bruyère SA, Sapin SA pays … of fees to an investment bank and to lawyers, in cash. The acquisition price itself is recorded separately. Record the entry for the fees.Journal entryL2Variant
- To acquire Rocaille SA, Hêtraie SA pays 5,000,000 to the former owners, plus 60,000 to an investment bank for transaction advice and 40,000 of legal fees. How does it treat these 100,000 of costs?Single choiceL2Variant
Remeasuring the previously held interest4 questions
- Mont SA held 30% of Aval SA, carried at …. On 30 September, it acquires a further interest that gives it control; the fair value of its previous 30% at that date is …. Case convention: an equity-accounted interest, whose remeasurement falls in profit or loss; no amount has been recognised in other comprehensive income in respect of this interest. Calculate the remeasurement gain on the previously held interest.CalculationL3
- Orchis SA held 25% of Pivert SA, carried at …. At the date it obtains control, the fair value of those 25% is …. Case convention: an equity-accounted interest, whose remeasurement falls in profit or loss; no amount is accumulated in other comprehensive income; the entry is made at business combination level. Record the entry remeasuring the previously held interest.Journal entryL3
- Sol SA held 20% of Lune SA, carried at 600,000; it buys a further 55% for 2,700,000 in cash and obtains control. At that date, the fair value of the previous 20% is estimated at 900,000, the 25% non-controlling interest at 800,000 (fair value) and Lune's identifiable net assets at 3,900,000. Case convention: an equity-accounted interest, whose remeasurement falls in profit or loss; no amount is accumulated in other comprehensive income. Write a note concluding on the profit in profit or loss and on goodwill, distinguishing facts of the case, rule and professional judgement.JudgmentL4
- Just before 1 April, Pélan SA held 30 per cent of Quercy SA, its associate. On 1 April, it acquires a further 40 per cent and obtains control of Quercy. Case data: Quercy is a business. How should the transaction be classified?Single choiceL2
Reclassifying other comprehensive income2 questions
- Quartz SA obtains control of Argile SA, in which it held an interest carried at …. At the acquisition date, the fair value of that interest is …. Case convention: a cumulative gain of … is recorded in other comprehensive income in respect of this interest and would be reclassified to profit or loss on a direct disposal; the remeasurement of the interest falls in profit or loss. Calculate the total gain recognised in profit or loss at the acquisition date.CalculationL3
- At the date Dolmen SA takes control of Fjord SA, a cumulative gain of … stands in the other comprehensive income reserve in respect of the previously held interest; it would be reclassified to profit or loss on a direct disposal of that interest. Case convention: the entry remeasuring the interest is made separately. Record the reclassification entry.Journal entryL4
Provisional amounts and the length of the period3 questions
- The measurement period does not exceed one year from the acquisition date and may end earlier if the acquirer obtains the information it was seeking.True / falseL2
- At the reporting date, the initial accounting for a business combination is incomplete for some items. What does the acquirer do, and for how long can it review those amounts?Single choiceL2
- Acquisition of Brande SA on 1 October N. At the reporting date of 31 December N, the valuation of a patent is not complete. The valuer's report received on 15 March N+1 concerns facts and circumstances that existed at 1 October N. What treatment does Brande apply?Single choiceL3
Measurement period adjustments3 questions
- Brise SA acquires 100% of Cirrus SA on 1 March for …. At the reporting date of 30 June, provisional identifiable net assets are …. In October, before the end of the measurement period, information about facts existing at 1 March reveals an unrecognised liability: identifiable net assets are reduced to …. Case convention: there is no non-controlling interest or previously held interest. Calculate the retrospective adjustment to goodwill.CalculationL2
- Six months after the acquisition of Aulne SA, and before the end of the measurement period, Platane SA learns of a dispute that existed at the acquisition date and was not recognised, whose liability is measured at …. Case convention: no deferred tax is to be considered and the retrospective adjustment is made at business combination level. Record the adjustment entry.Journal entryL3
- Pluton SA receives two pieces of information before the end of the measurement period of a business combination: (1) a report shows that a plot of land was worth 200,000 less than the provisional amount at the acquisition date; (2) three months after the acquisition date, the main customer of the acquiree terminated its contract, reducing the value of a customer relationship by 150,000. Write a short note concluding on the treatment of each piece of information, distinguishing facts of the case, rule and professional judgement.JudgmentL3
After the measurement period2 questions
- After the end of the measurement period, the acquirer still adjusts goodwill when it receives new information about the fair value of an asset acquired.True / falseL3
- Fourteen months after the acquisition, Vignes SA, whose measurement period has ended, discovers a calculation error in the measurement of a plot of land at the acquisition date. Which treatment applies?Single choiceL3
Transactions separate from the combination3 questions
- Which statements about the amounts that are or are not part of the exchange in a business combination are correct? More than one answer is possible.Multiple choiceL2
- To acquire Cime SA, Éclat SA pays 8,000,000 to the former owners. Outside the price, the seller reimburses Éclat for 90,000 of acquisition-related costs it had incurred. How is this reimbursement treated?Single choiceL3
- In the agreement to acquire Rive SA, the acquirer: (1) pays 6,000,000 to the former owners; (2) undertakes to pay 300,000 to Rive's management for a two-year consulting contract proposed by the acquirer; (3) has the seller reimburse 50,000 of advisory fees it had incurred. Write a short note stating, for each item, whether it is part of the exchange, distinguishing facts of the case, rule and professional judgement.JudgmentL3
Pre-existing relationships2 questions
- Before the combination, Hydre SA held a receivable of 400,000 from Algue SA, which it then acquires. Settlement of this pre-existing relationship in the transaction gives rise to a loss that the case measures at …, reducing the receivable. Case convention: the loss is case data; it is recognised separately from the business combination. Record the entry for the settlement of the pre-existing relationship.Journal entryL3
- Fabrique SA acquires Galet SA for 5,000,000. Before the transaction, Fabrique had granted a licence to Galet; the agreement states that 150,000 of the price relates to the settlement of that pre-existing licence. How does Fabrique treat this 150,000?Single choiceL4
Remuneration of former owners who become employees1 question
Accounting acquirer in a reverse acquisition1 question
Consideration in a reverse acquisition1 question
Subsequent measurement of items acquired2 questions
- As a general rule, after the acquisition date, the acquirer measures and accounts for the assets acquired, the liabilities assumed and the equity instruments issued in accordance with the IFRSs applicable to those items.True / falseL2
- Which statements about the subsequent measurement of the items of a business combination are correct? More than one answer is possible.Multiple choiceL3
Objective of the disclosures2 questions
- Which statements about the objective of the disclosures on a business combination are correct? More than one answer is possible.Multiple choiceL2
- Mirabelle SA closes its accounts on 31 December N; they will be authorised for issue on 10 March N+1. It carries out a business combination on 15 January N+1. Justify in a few lines whether, and why, the financial statements for N must contain information about this business combination.JudgmentL2
Specific disclosures for each combination1 question
Disclosures about adjustments1 question
Proposals of the 2024 exposure draft1 question
Link to IFRS 10: control and changes in ownership1 question
Link to IAS 36: goodwill and cash-generating units2 questions
- Cristal SA acquired … of Sable SA and measured the non-controlling interest at its proportionate share of identifiable net assets; the goodwill recognised is …. Sable is a cash-generating unit to which this goodwill is allocated. Case convention: the goodwill recognised belongs entirely to the … share. Calculate the carrying amount of goodwill grossed up to 100% before comparison with the recoverable amount.CalculationL3
- Zodiac SA acquires Tessin SA and recognises goodwill of 600,000. The expected synergies will benefit Zodiac's cash-generating units North and South, which are monitored separately for internal management purposes, and not Tessin itself. How does it allocate the goodwill?Single choiceL4