Asked by Kayla Kirkpatrick on Jun 11, 2024
Verified
Accounting standard AASB 3 Business Combinations requires the recognition of contingent assets in a business combination.
AASB 3
is an Australian accounting standard that specifies the procedures for accounting and reporting business combinations.
Business Combination
A transaction or other event in which an acquirer gains control over one or more businesses.
- Understand the requirements for recognizing contingent assets and liabilities in a business combination.
Verified Answer
AM
Arjela MustajJun 14, 2024
Final Answer :
False
Explanation :
AASB 3 Business Combinations requires the recognition of contingent liabilities in a business combination, but it does not allow for the recognition of contingent assets at the acquisition date.
Learning Objectives
- Understand the requirements for recognizing contingent assets and liabilities in a business combination.