IAS 28Chapter 3Lesson 1
Initial cost, goodwill and the bargain purchase
Step 1 of 7Learning objectives
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The investment is recorded at cost; the difference between that cost and the investor's share of the net fair values of the identifiable assets is goodwill, included in the carrying amount, or income if negative.
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Learning objectives
- Record the acquisition of an equity-accounted investment at cost.
- Calculate the share of net fair values and the difference from cost.
- Treat the difference: goodwill in the carrying amount, or income in the case of a bargain purchase.