(b) Explanation of Gain from a bargain purchase (Negative Goodwill) and the three items that must be reviewed
A bargain purchase is a business combination in which the calculation of goodwill leads to a negative figure. When this happens the acquirer must reassess whether it has correctly identified all the assets acquired and all the liabilities assumed and must recognise any additional assets or liabilities that are identified in that review.

Under IFRS 3, the acquirer must then review the fair value used to measure
the amounts to be recognised at the acquisition date for all the following:
i. The identifiable assets acquired and liabilities assumed;
ii. The non-controlling interest in the acquired company (if any); and
iii. The consideration transferred. Any amount remaining after applying the above requirements is
recognised as a gain in profit or loss on the acquisition date.