Question 1

On consolidation,adjustment to deferred tax assets and liabilities is required for:

Accepted Answer

A)  unrealised intra group profits 
B)  unrealised intra group losses 
C)  fair value adjustments 
D)  all of the above 
A)  unrealised intra group profits 
B)  unrealised intra group losses 
C)  fair value adjustments 
D)  all of the above

Question 2

Accounting standard AASB3 Business Combinations does not apply to:

Accepted Answer

A)  joint ventures 
B)  acquisition of assets not constituting a business 
C)  business combinations involving entities under common control 
D)  all the above 
A)  joint ventures 
B)  acquisition of assets not constituting a business 
C)  business combinations involving entities under common control 
D)  all the above

Question 3

Fair value adjustments relate to:

Accepted Answer

A)  differences between fair value and carrying amount of parent assets and liabilities 
B)  differences between fair value and carrying amount of subsidiary assets and liabilities 
C)  both A and B 
D)  none of the above 
A)  differences between fair value and carrying amount of parent assets and liabilities 
B)  differences between fair value and carrying amount of subsidiary assets and liabilities 
C)  both A and B 
D)  none of the above

Question 4

On consolidation a group can only offset current tax assets against current tax liabilities when the group:

Accepted Answer

A)  has adopted tax consolidation 
B)  has no partly owned subsidiaries 
C)  operated wholly within Australia 
D)  all of the above 
A)  has adopted tax consolidation 
B)  has no partly owned subsidiaries 
C)  operated wholly within Australia 
D)  all of the above

Question 5

If the carrying amount of an asset of a subsidiary in a business combination is increased to fair value,on consolidation the group will record:

Accepted Answer

A)  a deferred tax liability 
B)  a deferred tax asset 
C)  a gain on bargain purchase 
D)  none of the above 
A)  a deferred tax liability 
B)  a deferred tax asset 
C)  a gain on bargain purchase 
D)  none of the above

Question 6

The choice of the method of recording fair value adjustments in a business combination will be influenced by what factors?

Accepted Answer

Choice of methods of recording fair valu

Question 7

Adjustments required in a reverse acquisition only affect the consolidated financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Revaluation of acquiree's assets in a business combination via a consolidation adjustment represents the use of the cost model

Accepted Answer

A) True 
 B)False

Question 9

Current accounting standards require the use of the acquisition method in accounting for all business combinations

Accepted Answer

A) True 
 B)False

Question 10

An acquirer in a business combination can acquire:

Accepted Answer

A)  the assets and liabilities of a business 
B)  the issued shares of an acquire company 
C)  either A or B 
D)  none of the above 
A)  the assets and liabilities of a business 
B)  the issued shares of an acquire company 
C)  either A or B 
D)  none of the above

Question 11

Discuss the differential treatment for tax purposes of investments in subsidiaries compared to other assets.

Accepted Answer

Tax treatment of investment in subsidiar

Question 12

The acquisition method applies to:

Accepted Answer

A)  the sale of a subsidiary 
B)  the sale of individual assets 
C)  the sale of a business 
D)  all of the above 
A)  the sale of a subsidiary 
B)  the sale of individual assets 
C)  the sale of a business 
D)  all of the above

Question 13

In accounting for a reverse acquisition it is necessary to recognise the fair value of the net assets of:

Accepted Answer

A)  the acquiree 
B)  the acquirer 
C)  both the acquiree and acquirer 
D)  none of the above 
A)  the acquiree 
B)  the acquirer 
C)  both the acquiree and acquirer 
D)  none of the above

Question 14

Goodwill recorded by an acquiree in a business combination must be:

Accepted Answer

A)  recognised at fair value on acquisition 
B)  recognised at carrying amount on acquisition 
C)  not recognised in the business combination 
D)  none of the above 
A)  recognised at fair value on acquisition 
B)  recognised at carrying amount on acquisition 
C)  not recognised in the business combination 
D)  none of the above

On consolidation,adjustment to deferred tax assets and liabilities is required for:

Accounting standard AASB3 Business Combinations does not apply to:

Fair value adjustments relate to:

On consolidation a group can only offset current tax assets against current tax liabilities when the group:

If the carrying amount of an asset of a subsidiary in a business combination is increased to fair value,on consolidation the group will record:

The choice of the method of recording fair value adjustments in a business combination will be influenced by what factors?

Adjustments required in a reverse acquisition only affect the consolidated financial statements.

Revaluation of acquiree's assets in a business combination via a consolidation adjustment represents the use of the cost model

Current accounting standards require the use of the acquisition method in accounting for all business combinations

An acquirer in a business combination can acquire:

Discuss the differential treatment for tax purposes of investments in subsidiaries compared to other assets.

The acquisition method applies to:

In accounting for a reverse acquisition it is necessary to recognise the fair value of the net assets of:

Goodwill recorded by an acquiree in a business combination must be:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters

Exam 3: Fair Value Adjustments and Tax Effects

On consolidation,adjustment to deferred tax assets and liabilities is required for:

Accounting standard AASB3 Business Combinations does not apply to:

Fair value adjustments relate to:

On consolidation a group can only offset current tax assets against current tax liabilities when the group:

If the carrying amount of an asset of a subsidiary in a business combination is increased to fair value,on consolidation the group will record:

The choice of the method of recording fair value adjustments in a business combination will be influenced by what factors?

Adjustments required in a reverse acquisition only affect the consolidated financial statements.

Revaluation of acquiree's assets in a business combination via a consolidation adjustment represents the use of the cost model

Current accounting standards require the use of the acquisition method in accounting for all business combinations

An acquirer in a business combination can acquire:

Discuss the differential treatment for tax purposes of investments in subsidiaries compared to other assets.

The acquisition method applies to:

In accounting for a reverse acquisition it is necessary to recognise the fair value of the net assets of:

Goodwill recorded by an acquiree in a business combination must be:

Text Objectives and Introduction to Consolidation

Principles of Consolidation

Intra-Group Transactions

Non-Controlling Interest

Partly-Owned Subsidiaries: Indirect Non-Controlling Interest

Consolidated Cash Flow Statements

Accounting for Joint Arrangements

Accounting for Associates and Joint Ventures: the Equity Method

Translation and Consolidation of Foreign Currency Financial Statements

Segment Reporting by Diversified Entities

Filters