ACCT 001 Lecture Notes - Lecture 7: Financial Statement
Document Summary
Examples include administrative, advisory, legal, accounting, valuation, professional fees and so on. Represents future economic benefits from assets that could not be individually identified or separately recognised in the combination. Aasb 3 requires that the goodwill is: Measured at its cost at the date of acquisition. Goodwill = consideration transferred acquirer"s interest in fvina. Goodwill is considered to be a residual, and as such is affected . By what is recognised in fvina and how it is measured. A gain on bargain purchase arises when the acquirer"s interest in the fvina exceeds the consideration transferred. A gain on bargain purchase is a rare event. In the event of a gain on bargain purchase the acquirer is required to reassess if it has correctly . Identified all the assets acquired & liabilities assumed. Measured at fv all assets acquired & liabilities assumed. If a gain on bargain purchase remains, it is recognised immediately as a gain in p&l.