2020
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Renting
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Disclosure of leases
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Business combinations
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Presentation, recognition of leases
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Detailed explanation-1: -This Ind AS defines a business combination as a transaction or other event in which an acquirer obtains control of one or more businesses.
Detailed explanation-2: -Ind AS 103 provides guidance on accounting for business combinations under the acquisition method. A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
Detailed explanation-3: -Ind AS 103 has defined common control business combination as a business combination in which all the combining entities or business are ultimately controlled by the same person/ persons both before and after the combination and such control is not transitory in nature.
Detailed explanation-4: -a) If the Acquired Company is retained as a separate legal Entity- Accounting is to be done as per Ind AS-110 or AS-21 as applicable. b) If the Acquired Company is legally merged with the Acquirer- Accounting is to be done as per Ind AS-103 or AS-14 as applicable.