Page 25 - Topic 1 - 1.3. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Goodwill or gain on bargain purchase

• Goodwill is recognised as a non-current asset in the

statement of financial position.

• Gain on bargain purchase is recognised as a gain

(other income) in the profit or loss section of the

statement of profit or loss and other

comprehensive income in the year in which the

acquisition took place.

• If the gain on bargain purchase relates to a subsidiary

acquired in a prior period, it will be recognised as part of

opening retained earnings in the statement of changes

in equity.

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