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contingent consideration in form of cash

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › contingent consideration in form of cash

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarStephen Widberg.
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  • March 26, 2021 at 12:20 pm #615241
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir , contingent consideration in form of cash is included at EV of PV of cashflows and recorded as corresponding liability?
    Is liability then unwound at each year end? And also would liability be reassessed at each year end with any change accounted for in PNL?

    Would it be correct to say that “contingent consideration in form of cash is included at EV of PV of cashflows and recorded as corresponding liability. Liability is then unwound at each year end. Further, liability would then be reassessed at each year end with any change accounted for in PNL”

    March 28, 2021 at 12:16 pm #615364
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3449
    • ☆☆☆☆☆

    Almost perfect but:

    “liability would then be reassessed at each year end ”

    is waffle 🙂

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