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!
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IFRS - 03
4y ago#1Hi,
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
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