Gain on a bargain purchase
(i.e. fair value of the net assets acquired exceeds the total of the consideration transferred and the value of any non-controlling interest) is recognised in profit and loss.
It may be that in some cases only provisional values can be established at the acquisition date, i.e. for the value of subsidiary's assets fair value.
Provisional values should initially be used in the calculation of goodwill.
Adjustments can be made to the fair values of the assets acquired and liabilities assumed and/or the consideration transferred made within one year of the acquisition date (i.e. measurement period).
Such adjustments should be backdated to the acquisition date and readjusted the goodwill value.