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Contingent Liabilities

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Contingent Liabilities

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by AvatarMikeLittle.
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  • June 5, 2013 at 5:04 am #129255
    AvatarK1
    Member
    • Topics: 3
    • Replies: 3
    • ☆

    Hi there,

    Can any one explain why a contingent liability in Dec’12’s F7 paper a contingent liability is recognised in calculating Goodwill at Acquisition? Does this mean these should be recognised?

    Till now, in the books I’ve seen, contingent liabilities have always been described as something you make a disclosure of but do not recognise.

    Thanks

    June 5, 2013 at 8:04 am #129281
    AvatarMikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    But when calculating goodwill on the acquisition of a subsidiary, we DO take into account the fair value of contingencies per IFRS 3

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