BC42 SFAS 144 requires, and ED 4 proposed, newly acquired assets that meet the criteria to be classified as held for sale to be measured at fair value less costs to sell on initial recognition. So, in those instances, other than in a business combination, in which an entity acquires a non-current asset that meets the criteria to be classified as held for sale, a loss is recognised in profit or loss if the cost of the asset exceeds its fair value less costs to sell. In the more common cases in which an entity acquires, as part of a business combination, a non-current asset (or disposal group) that meets the criteria to be classified as held for sale, the difference between fair value and fair value less costs to sell is recognised in goodwill.
BC43 Some respondents to ED 4 noted that measuring newly acquired assets not part of a business combination at fair value less costs to sell was inconsistent with the general proposal that assets classified as held for sale should be measured at t
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