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
Date Written: September 3, 2018
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: Suggested Citation