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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Contingent payments – consolidation
Isn’t the contingent consideration and contingent liabilities of the subsidiary measured at fair value when consolidating.?
this fair value is calculated as a discounted payment weighted with probability , right?
if so, shouldn’t we have to unwind the discount back at the year end? I haven’t seen any questions i did follow this.
Also, if we unwind, that will be within the measurement period. does that trigger the goodwill at acquisition to be recalculated?
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1. Only unwind if there’s some kind of hint in the question – you would do it for deferred consideration, but for contingent consideration you’ll just be given an estimate.
2. unwinding is not re-assessing FV at measurement date – so no impact on goodwill.