Chapter-1

1. What do you understand by business combination? What are the

different types of business combination?
2. How does goodwill arise in Business Combination? Under what
conditions is it recorded?
3. How does negative goodwill arise in a business combination? How
is it normally treated for financial reporting purposes
4. When is goodwill considered impaired following a business
combination?

Chapter-2
1. What is the basic idea underlying the preparation of consolidated
financial statements?
2. What is meant by parent company? When is a company
considered to be a parent company?
3. What major criteria must be met before a company is
consolidated?
4. What is meant by indirect control give an illustration?

Chapter-4
1. What portion of the book value of the net assets held by a
subsidiary at acquisition is included in the consolidated balance
sheet.
2. What portion of the fair value of subsidiaries net assets normally
is included in the consolidated balance sheet following a business
combination?