Join the waitlist

Goodwill or Bargain Purchase Gain Calculator (ASC 805)

What do these figures come to once the work is shown?

Goodwill from consideration, NCI and previously held interest against net identifiable assets, with the step acquisition gain.

  • Runs in your browser
  • Nothing stored or sent
  • Free, no sign-up
Your figures
Example figuresIllustrative only. Type over them with your own.
Goodwill (bargain purchase gain as negative)
$3,000,000
Excess over net identifiable assets
Consideration, NCI and previously held interest
$10,500,000
Net identifiable assets
$7,500,000
Drawn to one scale
Goodwill (bargain purchase gain as negative)$3,000,000
Consideration, NCI and previously held interest$10,500,000
Net identifiable assets$7,500,000
Gain on remeasuring previously held interest$300,000
All results
MeasureResult
Goodwill (bargain purchase gain as negative)
Goodwill recognized
$3,000,000
Consideration, NCI and previously held interest$10,500,000
Net identifiable assets$7,500,000
Gain on remeasuring previously held interest$300,000
How this was worked out
Work shownrecomputed as you type
Goodwill = consideration + NCI fair value + previously held interest fair value - net identifiable assets
Negative result = bargain purchase gain
Step acquisition gain = previously held interest fair value - carrying amount

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Goodwill = consideration + NCI fair value + previously held interest fair value - net identifiable assets
  • Negative result = bargain purchase gain
  • Step acquisition gain = previously held interest fair value - carrying amount

How it works

ASC 805-30-30-1 measures goodwill as the excess of the consideration transferred, the fair value of any noncontrolling interest and the fair value of any previously held equity interest over the net identifiable assets acquired. If the result is negative, ASC 805-30-25-4 requires a reassessment of the identification and measurement, and ASC 805-30-25-2 then recognizes the remaining excess as a bargain purchase gain in earnings.

In a step acquisition, ASC 805-10-25-10 remeasures the previously held interest to fair value at the acquisition date with the gain or loss in earnings.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What comes before booking a bargain purchase gain?

A reassessment of whether all assets acquired and liabilities assumed are identified, and a review of how they, the consideration, NCI and any previously held interest were measured.

Are acquisition costs part of consideration?

No. They are expensed under ASC 805-10-25-23.

Is contingent consideration included?

Yes, at acquisition-date fair value.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

Related audit calculators

CalculatorNet Periodic Pension Cost Calculator with 10 Percent Corridor (ASC 715)Service cost, interest cost, expected return, prior service cost and corridor amortization of net loss, split by line.CalculatorAudit Confirmation Response Rate and Coverage CalculatorResponse rate by count and value, exceptions, and coverage of the confirmed population after alternative procedures.CalculatorDebt Covenant Headroom Calculator: EBITDA Cushion and Debt CapacityLeverage and coverage against covenant limits, the EBITDA decline before a breach and the extra debt the leverage limit allows.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
See how it works →

* required