Which of the Following Is Recommended as the Preferred Accounting

Multiple Choice

Which of the following is recommended as the preferred accounting treatment for excess on acquisition?

A) Reduce proportionately the fair values of the non-monetary assets acquired until the excess is eliminated
B) Reduce proportionately the fair values of the monetary assets acquired until the excess is eliminated
C) Treat it as a deferred credit in the balance sheet and periodically allocate it as income
D) Immediately recognise the excess on acquisition as income in the income statement