Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

March 2026 ACCA Exams Results

Comments & Instant poll

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

IFRS – 03

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IFRS – 03

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 22, 2021 at 6:14 pm #641337
    Avatarsaadathar14
    Participant
    • Topics: 10
    • Replies: 8
    • ☆

    Hello Sir,

    How can a business be purchased at the value less than the value of its net assets which is called The Negative Goodwill. Does it happen in real life too?

    Thanks in advance!

    November 27, 2021 at 7:42 am #641746
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    Yes, it does happen as the purchaser is paying more as they believe that they can make the business successful in the future. Think of it as a bargain purchase.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.