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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Equity method goodwill or gain on bargain purchase
Hi Mike,
IAS 28 Para 23(b) states that gain shall be recognised in profit or loss to the extent of excess share of net fair value of identifiable assets, liabilities and contingent liabilities over cost of investment in associate. Could you please explain the rationale behind this? Why the gain is to be recognised in profit or loss though the consolidation is not required?
Thank you.
Mike?!?!?!
What gain is it referring to? I sadly don’t carry my accounting standards book around with me.
Thanks