Which of the following statements is true regarding the treatment of negative goodwill under IFRS?

Negative goodwill, often referred to as "bargain purchase gain," arises when an acquirer pays less than the fair value of the net identifiable assets acquired in a business combination. Under IFRS, specifically in accordance with IFRS 3, when a business combination results in negative goodwill, this excess amount must be recognized as a gain in profit or loss at the acquisition date.

This treatment reflects the economic reality that the acquirer has obtained assets at a lower cost than their worth, resulting in an immediate gain. The requirement to recognize this gain ensures that the financial statements provide a true and fair view of the transaction's impact on the acquirer's financial position.

The other options, while they suggest different treatments of negative goodwill, do not align with IFRS guidelines. For instance, amortizing negative goodwill over a specified period misrepresents its nature as an immediate gain tied to the acquisition, and recognizing it as a liability inaccurately implies a future obligation. Ignoring it altogether would fail to provide necessary information about the bargain purchase and its implications for the acquirer’s financial results.