In a business combination accounted for as an acquisition, the fair value of the identifiable net assets acquired exceeds the fair value of the consideration paid by the acquirer and the fair value of the noncontrolling interest in the acquiree. The excess fair value of net assets over investment value should be reported as a:

1.Reduction of the values assigned to current assets and a deferred credit ("Negative Goodwill") for any unallocated portion.

2.Reduction of the values assigned to non-financial assets and a gain for any unallocated portion.

3.Gain

4.Pro-rata reduction of the values assigned to current and noncurrent assets.