Reference no: EM132992604

Problem 1: A bargain purchase arises when the net book value of the identifiable assets and liabilities exceeds the cost of the combination.

Group of answer choices

True

False

Problem 2: PFRS 3 "acquisition method" also means "purchase method". This method involves identifying the acquirer, measuring the cost of the combination and allocating the cost to the assets.

Group of answer choices

True

False

Problem 3: Eliminating entries are made to cancel the effects of intercompany transactions and are made on the workpaper only.

Group of answer choices

True

False

Problem 4: For practical reasons, ownership of 50% or more of voting power constitutes control, in the absence of any evidence to the contrary. However, control also arises from many other sources.

Group of answer choices

True

False

Problem 5: Under the entity theory, non-controlling interests are deemed to be as important as a stakeholder of the combined entity.

Group of answer choices

True

False