consolidated financial statement

Zzain6y ago

at the date of acquisition 1 may 20x2 it was estimated that the fair value of the potential liability was 500,000. the case was eventually settled out of court for 800,000 in december 20x2 (reporting date)? how do i account for this when preparing the consolidated statement of financial position?

P2-D2Tutor6y ago#1

Hi, The liability of 500,000 at acquisition is deducted from the net assets working in the acquisition date column. There is nothing to show in the group SFP at the reporting date, so no further adjustment are required, so nothing is deducted in the reporting date column. Thanks