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Contingent consideration for calculation of goodwill

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Contingent consideration for calculation of goodwill

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.
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    Posts
  • March 2, 2023 at 9:50 am #679961
    accacx
    Participant
    • Topics: 4
    • Replies: 3
    • ☆

    Dear sir,

    is contingent consideration a contingent liability under IAS 37 or it should be treated as financial liability under IAS 32?

    Thank you.

    March 3, 2023 at 8:01 am #680043
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3443
    • ☆☆☆☆☆

    Recognise contingent consideration at FV.

    If paid on cash – financial liability.

    If paid in shares – equity.

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