Under AASB 3 Business Combinations,a Gain on Bargain Purchase Arises

question 17

Multiple Choice

Under AASB 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.

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Definitions:

Payable

The amounts of money that a company owes to vendors or creditors for goods or services received that have not yet been paid.

Bearer

The individual in possession of an instrument, such as a check or promissory note, that is not made out to a specific payee.

Conditional Endorsement

An endorsement on a document or instrument subject to specific conditions or restrictions.

Payment

The act of satisfying a debt or obligation, usually by transferring funds to settle the amount owed.