Excess of fair value of total assets


In a business combination accounted for as an acquisition, how should the excess of fair value of net assets acquired over the consideration paid be treated?

a) Amortized as a credit to income over a period not to exceed forty years.

b) Amortized as a charge to expense over a period not to exceed forty years.

c) Amortized directly to retained earnings over a period not to exceed forty years.

d) Recorded as an ordinary gain.

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Accounting Basics: Excess of fair value of total assets
Reference No:- TGS086978

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