Dear Mike,
At d.o.a parent has a contingent consideration of 4.2m and it was provided for future action
After 1year, the fv of this contingent is reduced to 2.7m
Can u tell me double entry (soci/sofp) for this consideration???
Dr RE/ contingent exp
Cr provision
Over provision
Dr provision
Cr RE/ contingent exp
(No effect on cost of investment???)
Or
Dr contingent consideration
Cr provision
Over provision
Dr provision
Cr contingent consideration
(No effect on RE????)
Ask the Tutor ACCA FR
Contingent consideration
OR Can it be like this??
Initially
Dr C.O.I 4,200
Cr Contingent consideration 4,200
Dr Exp / RE (P) 4,200
Cr Provision for contingent consideration 4,200
Subsequently
Dr Contingent consideration 2,700
Cr Bank 2,700
Dr provision for contingent consideration 1,500
Cr Exp/RE 1,500
Why have you done this?
At 1.10 you ask a question
At 2.43 you ask the same question in a different thread
And at 3.09 you ask the same question again (this time with numbers to help me in case I'm not able to understand the question without the numbers!)
Please, DON'T DO THIS
Please, don't multiple post
Sorry Mike, please delete this thread
Accepted - but, no, I shall not delete it. Anyone reading it in the future will hopefully pay attention to it
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