IFRS
Bargain Purchase Gain (Negative Goodwill)
Recording the gain when a business is acquired for less than the fair value of its net assets.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Identifiable Net Assets | Asset (+) | 100,000.00 | - |
| Cash | Asset (-) | - | 90,000.00 |
| Gain on Bargain Purchase | Revenue (+) | - | 10,000.00 |
💡 Accountant's Note
Under IFRS 3, if you buy a company for less than its actual worth, the 'profit' is recognized immediately on the Income Statement as a gain.
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