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P2-D2.
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sguha
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in consolidation in the question if there is a contingent consideration it will be given at fair value which will be the present value right…..and we have to unwind it every yr charging to W5 group retained earnings just like deffered consideration.
P2-D2
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Hi,
You need to distinguish between deferred consideration, which is a promised payment at a point in the future, and contingent consideration, which is a future payment made if certain conditions are met.
Deferred consideration is recognised at present value and the discount unwound.
Contingent consideration is recognised at fair value and changes go through profit or loss.
Thanks
sguha
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