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Journal entryAdvancedVariant — group VG.IFRS3.000002Published

Question · Bargain purchase

Cassis SA acquires 100% of Menthe SA, paying 2,400,000 in cash. At the acquisition date, Menthe's identifiable assets have a fair value of 3,800,000 and its liabilities assumed 900,000. Case assumption: the check of the identification of the items and the review of their measurement have been carried out, and the excess remains. The entry is made at business combination level. Record the acquisition entry.

Fair value of identifiable assets
3,800,000
Fair value of liabilities assumed
900,000
Cash paid
2,400,000
Your answer
  1. Line 1

    Account Identifiable assets

  2. Line 2

    Account Liabilities assumed

  3. Line 3

    Account Cash

  4. Line 4

    Account Gain on a bargain purchase

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