A Research Note on Bargain Purchase Gains on Acquisition

Australian Accounting Review, DOI:10.1111/auar.12269, Forthcoming

15 Pages Posted: 22 Sep 2018 Last revised: 6 Oct 2018

See all articles by Humayun Kabir

Humayun Kabir

Auckland University of Technology

Date Written: September 3, 2018

Abstract

I explore the incidence, amounts, disclosure and potential sources of bargain purchase gains reported by an Australian sample of firms during 2013-15. I find that 7.58% of the acquirers reported bargain purchase gains during this period. The median gain as a percentage of consideration transferred was 18.90%. In contravention of IFRS 3 Business Combinations, not all acquirers with material bargain purchase gains disclosed in notes why the gain arose. The evidence suggests uncertainty about the sources of the gain.

Keywords: Bargain Purchase Gains, Business Combinations, IFRS, Australia

JEL Classification: G34, M41

Suggested Citation

Kabir, Humayun, A Research Note on Bargain Purchase Gains on Acquisition (September 3, 2018). Australian Accounting Review, DOI:10.1111/auar.12269, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3243610

Humayun Kabir (Contact Author)

Auckland University of Technology ( email )

AUT City Campus
Private Bag 92006
Auckland, 1142
New Zealand
+64 21 08309355 (Phone)

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