Chapter 1 Business Combinations (Part 1) PROBLEM 1: TRUE OR FALSE 1. FALSE – “business” and “control” 2.

FALSE – acquisit
” and “control” 2. FALSE – acquisition method 3. FALSE - acquirer 4. TRUE 5. FALSE – fair value or NCI’s proportionate share in the acquiree
roportionate share in the acquiree’s net identifiable assets 6. TRUE 7. FALSE – recognized in profit or loss after reassessment 8. TRUE 9. FA
s after reassessment 8. TRUE 9. FALSE – fair value less costs to sell 10. TRUE PROBLEM 2: TRUE OR FALSE 1. FALSE - ₱20 2. TRUE {100 + [(2
E 1. FALSE - ₱20 2. TRUE {100 + [(200 – 120) x 10%]} – (200 – 120) = 28 3. FALSE (100 + 10) – (200 – 120) = 30 4. FALSE 100 – (200 -120) = 2
= 30 4. FALSE 100 – (200 -120) = 20 5. TRUE 100 – (200 -120) = 20 (the liquidation costs are ignored because these are post-combination
ause these are post-combination expenses) 6. FALSE 100 – (200 + 5 intangible asset -120) = 15 7. TRUE 100 – (200 + 30 -120) = (10) 8. TRU
100 – (200 + 30 -120) = (10) 8. TRUE 100 – (200 -120 – 30 contingent liability) = 50 9. FALSE 100 – (200 -120 – 15 DTL*) = 35 *(200 CA for fi
20 – 15 DTL*) = 35 *(200 CA for financial reporting – 150 tax base) = 50 TTD; 50 x 30% = 15 DTL 10. TRUE 100 – (200 -120) = 20 The trade
E 100 – (200 -120) = 20 The trade secret processes are not ‘consideration transferred’ to Entity B’s