In respect to a business combination, a gain on bargain purchase arises where the acquirer's interest in the net fair value of the identifiable assets and liabilities acquired is greater than the consideration transferred by the acquirer to the acquiree.

Question

Quizplus · Accepted Answer

This statement accurately describes what a gain on bargain purchase is. It occurs when the acquirer pays less than the fair value of the net assets acquired.

In Respect to a Business Combination, a Gain on Bargain