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In the Consolidated PnL do we take gain on bargain purchase(negative goodwill) as other income or as a reduction from admin expenses?
Thanks
In real life – I don’t know! In an exam, personally I would show it separately – there’s bound to be a mark for it and if you lose it within, say, admin expenses by net off and you have the net figure incorrect and you haven’t shown how you’ve arrived at this incorrect admin net amount, then it’s possible that a marker may not be able to identify that you have correctly credited the bargain purchase to the Statement of Income.
If you show it separately, there’s no doubt!
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