Which statement is true in relation to business combination achieved in stages? a. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in profit or loss. b. The pre-existing interest shall be remeasured at fair value with any resulting gain or loss recognized in retained earnings.
Which statement is true in relation to business combination achieved in stages? a. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in profit or loss. b. The pre-existing interest shall be remeasured at fair value with any resulting gain or loss recognized in retained earnings.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 1RE
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Which statement is true in relation to business combination achieved in stages?
a. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in profit or loss.
b. The pre-existing interest shall be remeasured at fair value with any resulting gain or loss recognized in retained earnings.
c. The pre-existing equity interest shall be remeasured at fair value with any resulting gain or loss included in other comprehensive income.
d. The pre-existing interest shall not be remeasured.
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