Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FR

Consolidation

DDeepali10y ago
what will be the treatment of contingent liability of a fair value of $x during consolidation ? Please explain it with an example !
MMikeLittleTutor10y ago#1
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?
Sign in to reply to this topic.