Question

When a bargain purchase arises, IFRS 3 BUSINESS Combinations requires that the amounts involved in computing the bargain purchase should first be reassessed. When the amount of the bargain purchase has been confirmed, how should it be accounted for? A. Charged as an expense in profit or loss B. Capitalized and presented under non-current assets C. Credited to profit or loss D. Shown as a deduction from non-current assets

Answer 1

Answer:

The core principles in IFRS 3 are that an acquirer measures the cost of the acquisition at the fair value of the consideration paid; allocates that cost to the acquired identifiable assets and liabilities on the basis of their fair values; allocates the rest of the cost to goodwill; and recognises any excess of ...