[minnaingtun]

Thank you sir
I am confused that Dip IFR June 2007 question note 1. The contingent asset at the acquisition fair value is 3000. And the question said that subsequently won the case and so the model answer said it is charged to the RE. That is decreased RE. Why reduce RE? It is reduce asset and increase asset isn’t it?
I assume that at the acquisition date
Journal; Dr Asset Cr Pre acquisition reserve

Subsequent adjustment is
Journal; Dr Cash. Cr Asset

Am I right sir?
Regards

[Author]

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