IFRS 3Chapter 8Lesson 2
Bargain purchase: reassess before recognising a gain
Step 1 of 6Learning objectives
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When identifiable net assets exceed the price, the non-controlling interest and the previously held interest, the acquirer first checks its measurements; if the excess remains, it recognises it in profit or loss at the acquisition date.
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Learning objectives
- Recognise a bargain purchase and calculate the excess.
- Apply the reassessment checks before any gain.
- Record the bargain purchase gain in profit or loss at the acquisition date.