Consolidation

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August 8, 2015 at 4:40 am #266188
daina5
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what will be the treatment of contingent liability of a fair value of $x during consolidation ? Please explain it with an example !
August 8, 2015 at 7:27 am #266201
MikeLittle
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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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