Under AASB 3/IFRS 3 Business Combinations, a Gain on Bargain

question 31

Multiple Choice

Under AASB 3/IFRS 3 Business Combinations, a gain on bargain purchase arises when the acquirer's interest in the net fair value of the acquiree's identifiable assets and liabilities is:

• A) less than the carrying amount of the net assets acquired.
• B) less than the consideration transferred.
• C) greater than the consideration transferred.
• D) more than the book values of the identifiable assets acquired.

---

Definitions:

Plaintiff's Allegations

Claims made by the plaintiff in a lawsuit, detailing what the defendant did or failed to do that caused harm.

Active-Voice Sentence

A sentence structure where the subject performs the action stated by the verb, making the writing clearer and more engaging.

Plaintiff Filed

The initiation of a legal action in court by an individual or entity claiming to have incurred loss or injury by another.

Exclude Evidence

The legal practice of preventing certain facts or materials from being presented in court.