From CFAi text, ------------------- Under IASB standards, negative goodwill A. must be recorded as a gain B. is prorated to noncurrent assets. C. is accounted for as an extraordinary item. D. is amortized to income over a 10-year period.
I’m guessing C
cavil, no extraordinary item is allowed under IFRS
i think it’s included in equity, not sure though with IFRS,
Pretty sure negative goodwill is recorded as a gain, A)
i think A too Taking over a firm at less than its book value. Gain in my book
It’s recorded as a gain. See CFA vol3 pg 689