IFRS 3/AASB 3 requires that, if the amount paid for a business is less than the sum of the fair value of the net identifiable assets acquired, and this is a genuine bargain purchase, then the difference is to be:

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IFRS 3/AASB 3 stipulates that if the acquisition cost of a business is less than the fair value of the net identifiable assets acquired, indicating a bargain purchase, the difference should be recognized immediately as a gain in the income statement. This reflects the immediate economic benefit to the acquirer.

IFRS 3/AASB 3 Requires That, If the Amount Paid for a Business