An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised is referred to as:
A)gain on bargain purchase
B)goodwill
C)discount on acquisition
D)none of the above

Question

Quizplus · Accepted Answer

Goodwill represents the future economic benefits that arise from other assets acquired in a business combination that are not individually identified and separately recognised. This occurs when the purchase price paid for the business is more than the fair value of the net identifiable assets acquired. Gain on bargain purchase occurs when the purchase price is less than the fair value of the net identifiable assets acquired, while discount on acquisition is not a recognized term in accounting.

An Asset Representing the Future Economic Benefits Arising from Other