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International Financial
Reporting Standards (IFRS) |
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
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| International Financial Reporting Standard (IFRS) 3 |
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One of the entities in business combination is identified as the acquirer. Acquirer gains control of the acquiree. Others have non-controlling interest in the acquiree. |
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--> measured at fair value on acquisition date |
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Goodwill = (1) - (2) (1) Consideration paid to acquire net assets (2) Fair value of net assets (assets - liabilities) acquired |
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Gain on bargain purchase = (2) - (1) (1) Consideration paid to acquire net assets (2) Fair value of net assets (assets - liabilities) acquired Gain on bargain purchase --> recognized in profit or loss (current period earnings) --> on acquisition date |
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