CERTYNEX IFRS ACADEMY

A deferred tax benefit acquired in a business combination was not recognised at the acquisition date. Which statements about its subsequent recognition are correct?

It always reduces goodwill, whenever it is recognised.

It reduces goodwill if it is recognised within the measurement period on the basis of new information about facts existing at the acquisition date.

If it exceeds goodwill, the excess is presented as negative goodwill in the statement of financial position.

If it exceeds goodwill, the excess is recognised in profit or loss, goodwill being reduced to zero.

Recognised after the measurement period, it is recognised in profit or loss, unless the standard requires recognition outside profit or loss.