According to AASB 3,how is goodwill acquired in a business combination recognised?
A) As an asset, initially measured at cost
B) As a contingent liability, initially measured at fair value
C) As an asset, initially measured at fair value
D) As an equity account, initially measured at cost

Question

Quizplus · Accepted Answer

Goodwill acquired in a business combination is recognised as an asset, initially measured at cost according to AASB 3. This involves calculating the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree, and the acquisition-date fair value of the acquirer’s previously held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

According to AASB 3,how Is Goodwill Acquired in a Business