International Financial Reporting Standards (IFRSs)

Question 1

IFRS 3

Answer 1

Business Combinations

Gives guidance on the accounting treatment for consolidated financial statements

Defines business combination as…..
“a transaction or other event in which an acquirer obtains control of one or more businesses”

Question 2

IFRS 10

Answer 2

Consolidated Financial Statements

Requires that consolidated financial statements are to be prepared for a group.

Includes

• consolidated SPL
• consolidated SFP

Question 3

IFRS 15

Answer 3

Revenue from Contracts with Customers

The principle of this standard is that…

• an entity should recognise revenue
• to depict the transfer of promised goods or service
• in an amount that reflects consideration to which the entity expects