When the purchase price is less than the fair value of net identifiable assets acquired, this results in a bargain purchase gain. Under both IFRS (IFRS 3) and US GAAP (ASC 805), this gain is recognized immediately in profit or loss (income statement). The accounting treatment requires:

• First, reassess the identification and measurement of assets, liabilities, and non-controlling interests
• If the excess still exists after reassessment, recognize the gain in profit or loss
• This is not deferred or recognized in other comprehensive income