Contingent Consideration (BPP Q11 Robby)

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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June 20, 2024 at 5:14 pm #707470
Luna777
Participant
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Hi Stephen,
When adjusting the CSOFP, why is the amount added to NCL $40m, instead of $42m?
As the contingent consideration has not been accounted for in Robby’s individual FS at acqn, and has been adjusted to $42m at y/e, I believe $42m should be added back.
Thank you very much!
June 21, 2024 at 8:20 am #707489
Stephen Widberg
Keymaster
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Date of acquisition
Use FV at that date 40
SFP date
As consideration is in CASH as opposed to SHARES, it must be remeasured – Dr P&L Cr Liability 2 – no impact on goodwill – regular liability accounting
🙂
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