Dear Tutor,
In Q1 in the September/December 2015 there is a contingent liability at acquisition of Salt. However this contingent liabilty is not included when calculating the post acq. share of profit in the group Retained earnings.
Share of post-acquisition profits of Salt (80% of ($74m – $56m)) 14·4
Could you please help me why the contingent liability is not considered?
Thank you.
Ask the Tutor ACCA SBR
Contingent Liability
9y ago#1Hi,
If the contingent liability hasn't changed in value then there is no post-acquisition profit movement in relation to it.
Thanks
Thank you very much for all your help.
Sign into reply to this topic.