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TA-348
BU51NE55 COMBINATIONS & F,S. CONSOI IL)AI'IOI\I

,) 13. Which of the followirrg is ccnsidered as part of consideration transferred in a business combination?
il a. Direct costs (e.9., teEat fees; finder':; {r':es; btal<eratle fees; auclit fees)
b. Indirect costs (e.g., crssts of t"naintaining an acquisiiion departnent)
c. Cost of issuing debt and equity se(:ut'ities
d. Contingentconsiclerdtions

t 14. Gooclwill recognized in a business cornblnatron should tre:

a. Written off against retalneci earfti!1:.ls
b. Recognized al an itrtangible asset ancj arrrcrtized over its r.rseful life
c. Recognized as an inti?ngitrle asset errC te:terj reqrriariy for impairment
d. Reco[nized as an intangible: assc.t arrcl testecJ fcr imp;rirrrrent when a trigEer event occurs

t -- Uncler the acquisition nreth$d, wircrr the acquirer's

15.
greater than the c0nsi,Cerati*r-rs trarrsferred in
a. A goodwill that shall br: anrcrrtized ior
a
no
inr.lirest in thE fair value of net identifiabie a$sets
L:usiness
rn.3rt thsn
comhifi&tion, the excess is accounted for as
2c years
i5

b. A looclwill ihat shall rrot be arnr:riizeC bui: tested reguiarly for impairment
c. A gain on barqain purchase recognized in profit cr ioss after dr:ing reassessment
d. n gain on bargain purchase reccenized in profit or toss befcre doing reassessnrent
16. An acquirer holds 35o/o equity rnterest in ari aiq'Jiree and the.n subseqr-rently
puquiE?+cther 35o/o
A
l' equity interest in order to gain corrtrol over the acqr-riree. This illustrates a business combination
a, Achieved in stages c. *ased on rnutual shareholdings
b. Based on reverie acquisition d. Invoivinq entities under cofflfilon corttrol
income, expenses
17. These are the flnarrcial statements of a qroup in whiclr the assets, liabilities, eqr'rity,
D and caslr flows of the parent and its suhsidiaries are preriented as thqse of a single economic entity'
a. Separate finanr:ial statements c. Corrrlrined firrancial statements
b. projected financial stateryreots d. Corrsolidated financial $taternents
results in
1g. when one entity Controis the busirress operations of anothe!- entity, tlre business combination
C which of the followinS type of relationshin?
a. Merger .. Parent-sttbsidiarY
b. P'artnershiP d. investor-associate
,i
,l
19. In the context of conspiidated finan';ial repa:"t-*, a G-ROilP is:
a. An entlty that has no suLrsidiaries
h. a subsidiary entity {)f another entity
c. a parent efttity a,nd all its si:bsid;aries
d. an entity that has ofle or rnore s'-lbsidiarie:i
',1
20. consolidated FS shall include the iitianciai statenlents of the
Yt a. Parent cornpany and atl of its dorrrestic silbsrdiaries
b. parent company ancl all of its dtrrnestic ar,ci ior-eigt] strbsidiaries
c. parent cornpany arrd ali cif its rJor,testic assirriates and subsidiaries
d. parenL.company ancl aii clf rts Ccrnestic and foreitJn associates and subsidiat"ies
!i 21, Consoliciated Fs shail include the fir:ancial staternents ol Lhr:
a. Parent company and al| of its dornestic suhsidiaries onl'y
b. parent company anet all of its sribr,idiaries with siniilar activities
c. parent company and ail of its subsidiaties with dissirniiar activities activities
d. parent cornpany and ali of its subsidiarres witlr stmilar and c.iissimilar
22. urder PFRS 10, an investor Controis an investee if tt'e investor has the:
! I) power over the investee, i.e, the irivestor has existing right's that give itreturns)
relevant activjties (the activities that siqnificantly affer:t the inve$tee's
the ability to direct the

II) Exposure, or rights, to variable returris frc,rn its; trl,/c'h'er,-rellt witir the investor's
investee
returns.
it'l; Anitity to use it"s pciwer over tlre irrveste{. ro affect ihe anrcrun!: cf the
a. I and iI c. II and lll
b. I and III tl. I, ii arrd III
23. Control is automatically presurred te exist where the parent either directly
or indirectly thraugh
i'\
U subsidiaries owns
a. rnore than 25orb hut less than S1a/r: sf the voting power of aft entity
b. more than 100/o but less than 25% of the voting pov1/qr of an entit-y
c. more than 50o1o of the voring ,r''o'*ver oi ;r'1 entiiy
d. 50o/o or more of the voting power.of an r:nl'iiy

P,rce 2 r:f l1 naoes ,ffi