- This topic has 1 reply, 2 voices, and was last updated 4 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
march 2020 Ecoma Co. Q4b)i) again!
sir again the same question! Now i have a doubt related to the provision we have created pertaining to contingent consideration of $0.4m that has a 40% chance of accruing to the entity.
Now in F7 we had studied that if the chances of contingent asset are less than 50% then we ignore, if between 50-95% then disclose through note and over 95% we need to recognise an asset.
so here if the probability was less than 40%, should not we have ignored the asset(receipt of $0.4m) ???
Why find the expected value??
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.