Question

What types of transactions would fall under business combinations that should be included in the “other disclosures” section of the financial statements?

Answer 1

The types of transactions would fall under business combinations in the “other disclosures” section of the financial statements includes:

-- contingent liabilities and unrecognised contractual commitments

-- non-financial disclosures, such as objectives and policies of the company's financial risk management

An entity is required to disclose, in the summary of important accounting policies or other significant notes, the judgements, apart from those that involve estimates, that management has made while applying the entity's accounting policies that have the most vital effect on the amounts recognised in the financial statements