单选题 During 2007, Big 4 Company" s warehouse was totally destroyed by a tornado. Tornados are very rare in the region where Big 4 is located. The book value of the warehouse at the time of the tornado was 10 million and Big 4 is self-insured. In addition, on June 30, 2007, Big 4 acquired one of its major suppliers. The fair value of the net assets acquired by Big 4 was greater than the purchase price. According to International Financial Reporting Standards, should Big 4 recognize an extraordinary item for tornado damage and should Big 4 recognize negative goodwill on its balance sheet due to the acquisition?
Extraordinary loss Negative goodwill
①A. No Yes
②B. Yes No
③C. No No

A、 ①
B、 ②
C、 ③

【正确答案】 C

【答案解析】IFRS does not permit income statement items to be recognized as "extraordinary" in the income statement. Negative goodwill is not reported on the balance sheet ; rather, the excess of fair value over the price paid in an acquisition is recognized as a gain in the income statement.