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Hello Sir, I have an inquiry about the contingent consideration in business combination
For subsequent remeasurement
1.Why the change in the financial liabilties might recognise in the OCI (IFRS 9)? The financial liability does not have FVTOCI option.
2.for not within the scope of IFRS 9,will be fall within IAS 37.My question is if the probability of the payment not probable, then the contingent consideration will be derecognised, what is the double entry will be?
1. In the exam I would have thought that any change in financial liability will go to P&L.
2. The contingent consideration will not be derecognised – you will continue to measure it at fair value. If there is a difference on payment – the difference will be in the P&L.
Even the probability of the payment is no longer probable or even it’s remote?
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