When is bargain purchase gain recognised in profit or loss?

[IFRS 3.34-35] However, before any bargain purchase gain is recog­nised in profit or loss, the acquirer is required to undertake a review to ensure the iden­ti­fi­ca­tion of assets and li­a­bil­i­ties is complete, and that mea­sure­ments ap­pro­pri­ately reflect con­sid­er­a­tion of all available in­for­ma­tion. [IFRS 3.36]

How is a transaction separate from a business combination?

When determining whether a particular item is part of the exchange for the acquiree or whether it is separate from the business combination, an acquirer considers the reason for the transaction, who initiated the transaction and the timing of the transaction.

When did the FASB change the accounting for business combinations?

FASB issued a similar standard in December 2007 (SFAS 141 (R)). The revisions result in a high degree of con­ver­gence between IFRSs and US GAAP in the accounting for business com­bi­na­tions, although some po­ten­tially sig­nif­i­cant dif­fer­ences remain.

When to take contingent consideration into account in a business combination?

Con­tin­gent con­sid­er­a­tion must be measured at fair value at the time of the business com­bi­na­tion and is taken into account in the de­ter­mi­na­tion of goodwill.

Is the exchange of cash a recordable transaction?

An exchange of cash for merchandise is a transaction. Merely placing an order for goods is not a recordable transaction because no exchange has taken place. In the coming sections, you will learn more about the different kinds of financial statements accountants generate for businesses.

When was the corporation finance letter sent to the public?

In March 2010, the Division of Corporation Finance sent the following illustrative letter to certain public companies requesting information about repurchase agreements, securities lending transactions, or other transactions involving the transfer of financial assets with an obligation to repurchase the transferred assets.

Where does the 30, 000 cash go in a business?

The $30,000 cash was deposited in the new business account. Transaction analysis: The new corporation received $30,000 cash in exchange for ownership in common stock (10,000 shares at $3 each). We want to increase the asset Cash and increase the equity Common Stock. 1. Owner invested cash

When did I trade in my business vehicle?

Solved: I used a vehicle for business and traded it in for another business vehicle in June. I’m having trouble figuring out the deductions for both vehicles.