IFRS 3/AASB 3 Requires That, If the Amount Paid for a Business

Multiple Choice

IFRS 3/AASB 3 requires that, if the amount paid for a business is less than the sum of the fair value of the net identifiable assets acquired, and this is a genuine bargain purchase, then the difference is to be:

A) taken directly to an equity account.
B) offset against any goodwill previously acquired.
C) used to reduce the value of the monetary assets acquired.
D) recognised immediately as a gain in the income statement.