Internally created synergies of a subsidiary can be recognised as an asset during a business combination.

Question

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According to International Financial Reporting Standards (IFRS), internally created synergies of a subsidiary can be recognised as an asset during a business combination if they meet the definition of an asset and their future economic benefits are identifiable and measurable. This is known as the "bargain purchase gain" and is recognized as a gain in the consolidated financial statements.

Internally Created Synergies of a Subsidiary Can Be Recognised as an Asset