# Bargain purchase

> An acquisition where the fair value of the net assets acquired is higher than the price paid. After the acquirer checks its figures, the excess is recognised as a gain in profit or loss.

Source: https://finconsol.com/blog/glossary/bargain-purchase/ (updated 28 October 2026)

## Why does it matter in a group?

A bargain purchase is unusual, so the acquirer first checks that it has found and measured every asset and liability before it records a gain.[1](#src-1) Under IFRS 3 the gain goes to profit or loss on the [acquisition date](/blog/glossary/acquisition-date/). It is not trading profit, and readers of the group accounts should be able to see it.

## A small example

Zenvara pays GBP 3,200,000 for all of a company whose identifiable net assets are worth GBP 3,600,000 after the check. The difference of GBP 400,000 is the bargain purchase gain.

## Sources

## Sources

1. IFRS 3 [Business Combinations](https://www.ifrs.org/issued-standards/list-of-standards/ifrs-3-business-combinations/), paragraphs 34 to 36.