# This Ind AS was notified vide G.S.R. 111(E) dated 16th February, 2015 and was amended vide Notification No. G.S.R. 365(E) dated 30th March, 2016, G.S.R. 310(E) dated 28th March, 2018, G.S.R. 273(E) dated 30th March, 2019, G.S.R. 274(E) dated 30th March, 2019, G.S.R. 463(E) dated 24th July, 2020, G.S.R. 419(E) dated 18th June, 2021 and G.S.R. 255(E) dated 23rd March, 2022.
1 In this standard as well as in all other Indian Accounting Standards, reference to bargain purchase gain arising on a business combination includes amounts recognised in paragraphs 34 and 36A of this Ind AS, as the case may be, unless otherwise specified.
2A The requirements of this Standard do not apply to the acquisition by an investment entity, as defined in Ind AS 110, Consolidated Financial Statements, of an investment in a subsidiary that is required to be measured at fair value through profit or loss.
2B Appendix C deals with accounting for combination of entities or businesses under common control.
All other components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by Ind AS.
5 Substituted vide Notification No. G.S.R. 273(E) dated 30th March, 2019.
Exceptions to the recognition or measurement principles
Exceptions to the recognition principle
7Liabilities and contingent liabilities within the scope of Ind AS 37 or Appendix C, Levies, of Ind AS 37
21A Paragraph 21B applies to liabilities and contingent liabilities that would be within the scope of Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, or Appendix C, Levies, of Ind AS 37 if they were incurred separately rather than assumed in a business combination.
21B The Conceptual Framework defines a liability as ‘a present obligation of the entity to transfer an economic resource as a result of past events’. For a provision or contingent liability that would be within the scope of Ind AS 37, the acquirer shall apply paragraphs 15–22 of Ind AS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. For a levy that would be within the scope of Appendix C of Ind AS 37, the acquirer shall apply Appendix C of Ind AS 37 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date.
21C A present obligation identified in accordance with paragraph 21B might meet the definition of a contingent liability set out in paragraph 22(b). If
6 Substituted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
7 Heading and paragraphs 21A-21C inserted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
so, paragraph 23 applies to that contingent liability.
8Contingent liabilities and contingent assets
23A 11Ind AS 37 defines a contingent asset as ‘a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity’. The acquirer shall not recognise a contingent asset at the acquisition date.
8 Substituted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
9 Opening paragraph substituted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
10 Substituted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
11 Inserted vide Notification No. G.S.R. 255(E) dated 23rd March, 2022.
Exceptions to both the recognition and measurement principles