CFAS Chapter 21 Problem 1
CFAS Chapter 21 Problem 1
1. Which of the following methods must be applied in accounting for business combinations
under PFRS 3? Acquisition method
2. The company that obtains control over another company in a business combination
transaction is referred to as the acquirer
3. According to PFRS 3, which of the following transaction costs would increase the amount of
goodwill from a business combination? None of the above (options presented: legal fees,
accounting fees and similar costs; issuance costs of equity securities; issuance costs of debt
instruments)