Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Contingent consideration
- This topic has 3 replies, 2 voices, and was last updated 4 years ago by Stephen Widberg.
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- September 22, 2020 at 4:17 pm #586404
Hello Sir, I have an inquiry about the contingent consideration in business combination
For subsequent remeasurement
1.Why the change in the financial liabilties might recognise in the OCI (IFRS 9)? The financial liability does not have FVTOCI option.
2.for not within the scope of IFRS 9,will be fall within IAS 37.My question is if the probability of the payment not probable, then the contingent consideration will be derecognised, what is the double entry will be?
September 24, 2020 at 6:03 pm #5865711. In the exam I would have thought that any change in financial liability will go to P&L.
2. The contingent consideration will not be derecognised – you will continue to measure it at fair value. If there is a difference on payment – the difference will be in the P&L.
September 26, 2020 at 8:40 am #586744Even the probability of the payment is no longer probable or even it’s remote?
September 26, 2020 at 11:27 am #586760even if it’s one a million!
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