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contingent asset treatment in consolidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › contingent asset treatment in consolidation

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by AvatarMikeLittle.
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  • May 31, 2014 at 1:59 am #172036
    Avatarabbas7796
    Member
    • Topics: 135
    • Replies: 254
    • ☆☆☆

    hello Mike

    lets say we have a contingent asset of a subsidiary during acquisition, am i right in saying that we have to take this into account in calculation of our goodwill (add this to subsidiary net assets)?

    following consolidation, where should we show this on the SOFP?

    May 31, 2014 at 7:29 am #172054
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    I don’t think I remember ever seeing that! Yes, I suppose that it must be taken into account. Where to show it? Probably as a separate line item ( a separate category within assets)

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