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If the consideration transferred is greater than the acquired interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the
If the consideration transferred is greater than the acquired interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree:
the difference is immediately charged to profit or loss in the period in which the business combination occurred. |
a gain on bargain purchase results. |
goodwill has been purchased and must be recognised on consolidation. |
the difference is treated as a special equity reserve in the acquirers accounting record |
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