Question: Where the consideration transferred is less than the fair value of the identifiable net assets and contingent liabilities acquired, the difference must be recognised in

Where the consideration transferred is less than the fair value of the identifiable net assets and contingent liabilities acquired, the difference must be recognised in the consolidation worksheet as:

Select one:

a. a transfer to the business combination valuation reserve.

b. a gain on bargain purchase.

c. goodwill.

d. an increase in the Shares in subsidiary asset.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 1 question 1 Question text The pre-acquisition entry is necessary to: Select one: a. avoid overstating the equity and net assets of the group. b. avoid understating the equity and net assets...

Where the consideration transferred is less than the fair value of the identifiable net assets and contingent liabilities acquired, the difference must be recognised in the consolidation worksheet...

NEED ANSWER BEFORE 11:00 IF NOT LET ME KNOWTODAY OCTOBER FIRST, THEY ASK ME FOR MORE MONEY BUT DO NOT KNOW HOW TO ADD MORE Text 1 450 A business combination is accounted for properly as an...

The non-controlling interest columns on a consolidation worksheet are used to: a. adjust the amounts that have been recorded for intragroup sales. b. adjust the amounts that have been recorded for...

pick from the multiple choice Under the full goodwill method, a control premium is recognised when: a. the parent paid more than the fair value for the shares they acquired. b. the parent paid less...

The Apple group consist of the parent company, Apple Ltd and its subsidiary companies, Blue Ltd and Colt Ltd. Statement of financial position as at 28 February 2022 Apple Ltd Blue Ltd Colt Ltd N$'000...

Joey, a public limited company, operates in the media sector. Joey has investments in two companies. The draft statements of financial position at 30 November 20X4 are as follows: The following...

According to the information below why would " impairment assessment of goodwill and other intangible assets" be a significant risk factor to a bank? Goodwill Goodwill arises on the acquisition of an...

Under the full goodwill method, a control premium is recognised when: a . the parent paid more than the fair value for the shares they acquired. b . the parent paid less than the fair value for the...

Air is accelerated as it is heated in a duct with negligible friction. Air enters at V1 = 100 m/s, T1 = 400 K, and P1 = 35 kPa and then exits at a Mach number of Ma2 = 0.8. Determine the heat...

National Park Tours Co. is a travel agency. The nine transactions registered by National Park Tours during May 2019, its first month of operations, are indicated in the following accounts: Money...

( LO 5 . 2 ) The volume of a sphere with radius r is V ( r ) = 4 3 r 3 . What is the volume of a sphere with a radius of 8 inches? Enter an exact answer.

Question 1 Isamu owns I Pity the Foot, a retail shoe store. Isamu carefully conthis costs by ordering in bulk, limiting labor costs, and renting the additional space in his building to another...

Describe why intercultural communication is a necessity

3.122 Robert Smith uses either regular plowing or minimal plowing to prepare the cornfields on his Minnesota farm. Regular plowing was used for 40% of the field acreage. Analysis after the crop was...

3.120 After meeting with the regional sales managers, Lauretta Anderson, president of Cowpie Computers, Inc., you find that she believes that the probability that sales will grow by 10% in the next...