Regarding goodwill and fair value adjustments, any excess of the entity's share of the net fair value of an associate or joint venture's identifiable assets and liabilities over the cost of the investment is to be recognized as _______________ in the determination of the entity's share of the associate or joint venture's profit or loss in the period in which the investment is acquired.

Question

Quizplus · Accepted Answer

This excess is recognized as income because it represents a gain on the bargain purchase, reflecting the entity's share of net fair value of identifiable assets and liabilities exceeding the cost of investment at acquisition.

Regarding Goodwill and Fair Value Adjustments, Any Excess of the Entity's