Sir, for PYQ Sept 2018 Q1 (b)
"an exposure draft has been issued so that no business acquisition occurs where substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. This is sometimes referred to as a screening test"
What is the mean ? totally no clue about it.
Thank you.
Ask the Tutor ACCA SBR
Melon
6y ago#1Whatever it was - I think it's gone; the debate was that if you buy a company which owns a shopping centre but has no staff - then the entire acquisition is in substance PPE and not an investment is a subsidiary
I'm not sure whose exam kit you are using but I'm surprised they hadn't taken this out of the answer
Relevant current issues for 20/21
1. Accounting policy changes
2. Materiality in the context of financial
reporting
3. Defined benefit plan amendments,
curtailment or settlement
4. Management commentary
5. Sustainability Reporting
Thank you Sir,but can I know the result of the debate? is it the IFRS 3 being amended for the business definition?
Thank you.
Will this "screening test" still apply now?
6y ago#4The most up to date IFRS 3 is summarised here - you can see the current rules on determining whether a transaction is a business combination.
https://www.iasplus.com/en/standards/ifrs/ifrs3
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