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IFRS 3

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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October 6, 2018 at 1:19 pm #476621
gangsta1
Member
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Sir under the above mentioned standard, can you please say why “Acquisition Cost” is treated as an expense and not an asset.
October 7, 2018 at 10:29 am #476706
P2-D2
Keymaster
- Topics: 4
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Hi,
Think back to the definition of an asset, and you will find that the cost doesn’t fully meet the definition. The cost is just an expense to the business and doesn’t increase the goodwill in the acquisition.
Thanks
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