Asked by
Maria Sanchez
on Oct 16, 2024
Verified
IFRS 10 Consolidated Financial Statements outlines the requirements for identifying the company that is the acquirer in a business combination when it's not clear who that is. Which is NOT a consideration in determining which company is the acquirer?
A) If the means of payment is cash, which party is paying the cash.
B) Relative holdings of voting shares in the combined entity.
C) Voting rights of the respective parties after the combination of their businesses.
D) Any by-laws or provisions of the incorporation acts of each company that details the manner in which a business combination will occur at law.
Acquirer
A company or individual that purchases another company, typically in the context of mergers and acquisitions.
Voting Shares
Shares that give the shareholder voting rights in company decisions, typically one vote per share.
Consolidated Financial Statements
Combined financial reporting documents that present the overall financial status of a parent company and its subsidiaries as a single entity.
- Master the determination process of acquirer and acquiree during business integrations and its implications on accounting reports.
Verified Answer
EP
Learning Objectives
- Master the determination process of acquirer and acquiree during business integrations and its implications on accounting reports.