Link to IAS 12: deferred tax

Learning objectives

• Analyse the effect of the deferred tax arising in a business combination on goodwill or on the bargain purchase gain.L3

Normative references

• IFRS 3 §24Exception for income taxes: the acquirer recognises and measures in accordance with IAS 12 the deferred tax assets and liabilities arising from the assets acquired and liabilities assumed (para. 24), as well as the potential tax effects of temporary differences and carryforwards existing at the acquisition date or arising as a result of the acquisition (para. 25). These deferred taxes form part of the identifiable net assets and therefore change, by calculation, goodwill or the bargain purchase gain (para. 32).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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