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contingent consideration

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › contingent consideration

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • August 6, 2021 at 2:55 am #630527
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    TA: Onerous lease contracts and impairments, and investor issues

    Thirdly, the obligation needs to be a present obligation that exists as a result of past event. Hence, any contingent amounts will only be recognised from the date management believes that the performance conditions WILL BE MET.

    professor this relates to Q3) March 2020 regarding contingent payments to player.

    professor an obligation to pay should only arise once the the performance conditions HAVE BEEN MET, isnt it so?

    How can there be a present obligation until the performance conditions have been met?

    August 6, 2021 at 5:52 pm #630611
    Stephen Widberg
    Keymaster
    • Topics: 12
    • Replies: 2843
    • ☆☆☆☆☆

    An obligation may be met on signing the contract. I am hoping you have watched my debrief.

    Please keep it simple in the exam. They are assessing whether you can communicate with directors not academics.

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