Question

X Co has issued 1000 ordinary shares to the shareholders of Y Co in order to...

X Co has issued 1000 ordinary shares to the shareholders of Y Co in order to acquire the whole of share capital of Y Co. Which of the following is applicable to this transaction

O IFRS 2 Share - Based Payment

O IFRS 3 Business Combinations

O IFRS 9 Financial Instruments

OIAS 28 Investments in Associates and Joint Ventures

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Correct asnwer is ''IFRS 3 Business combination''

IFRS 3 is applied on transactions in which  a business takes control of one or more business.It could be merger or acquisition.

So in the given case since X co acquire 1,000 ordinary shares of Y Co which is th whole capital of Y Co, which means it took  control and this transaction is a business combination and IFRS 3 is applicable to transaction.

IFRS 9 is applicable when there is a purchase or sale of Financial assets and liabilities, such as Bonds,shares which does not account for control in a company and does not have significant influence.

IFRS 28 is applied on transaction which involve purchase of stake in company without a control but with significant influence.

& IFRS 2 Shre-bAsed payment is applied to account for ESOPS Granted to employees or any other payment in nature of equity to any stakeholders.

Add a comment
Know the answer?
Add Answer to:
X Co has issued 1000 ordinary shares to the shareholders of Y Co in order to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT