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; asin ess Combinations - Statutory Mergers and Statutory Consolidations Gig 9 meu eel ew NLL sy a 1 b 1. 21... d 31.04 4h 4a “ob 12. 4 22.; b 32. ¢ 42. ¢ a 13, +b 3. ¢ 3b 4 dG 4a 14. a 24. 4a 34. b 44. b 5, .¢ 15. b 25. °b 35. oc 45. b "3 16. ¢ 2%. d 36. oC 46. Cc 7, 6 17, ¢ 277. OC 37, a 47. b g. b 18. a 28. b 38.' ‘Cc 48. a 9. a 19. b 2. d 39. d 10. © 20. a 30. d 40. _b MULTIPLE CHOICE ANSWERS EXPLAINED 1. (e) gs : The following expenses as a result of business combination are as follows: Finder's fE€S saeceenseserenecre ‘ Pp 40,000 Accountant's fee (advisory) 16,000 Legal fees (advisory) ......... 15,000 Salary of Rivendell's employees 16,000 Cost of closing duplicate facilities ........ 12/000 Cost of shareholder's meeting. to vote ON the MEMGET ........---s-ssereerer tee 14,000 — 1 Total EXPENSES -aaccsessssnsessseseceeeneetsssensesennecnnneesiessennaseennnnnecnnannneresennnetestssess P107,000.. | ——— ' Acquisition-related costs. Acquisition-related costs are the costs that the acquirer incurs to effect a business combination. Those costs include direct costs such finder's fee, advisory, legal, accounting, valuation, and other professional or consulting fees; indirect costs such as general admiinstrative costs, cost of duplicating facilities and ! . Costs of maintaining wn internal acquisitions department, and cost of issuing and registering equity securities. ficier PERS 3, the acquirer is required to recognize acquisition-related costs as experises ect costs and indirect costs) in the periods in which the costs are incurred and services recognueg i with on exception. ie. the costs to issue debt or equity securities are in accordance with PAS 32 (for equity - debited fo APIC accoui PFRS 9 (for debt - debited to Bond Issue Costs) mt ~ PAS 39/ Refer to Cha i i irect costs in the pter No. 26 for further discussion on acaquisiti it ts in th C : ths yr quisition-related di Separate ad consolidated financial’ statements of parent entity. eck . Scanned by CamScanner 
