what will be the treatment of contingent liability of a fair value of $x during consolidation ? Please explain it with an example !
Ask the Tutor ACCA FR
Consolidation
If it's an unrecorded contingent liability of the subsidiary as at date of acquisition, it's included as though it were an actual obligation - ie it's recognised as a liability in the consolidated accounts.
I don't think that that should warrant an illustration!
OK?
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