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

question 21

Multiple Choice

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

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