Contingent Liability

Hi, If the contingent liability has not been recorded at fair value then it needs to be recorded on consolidation at fair value. When we record it this will then reduce the net assets as we are increasing the value of the liabilities. We normally have to deal with fair value adjustment that in crease the value of the net assets at acquisition, such as those relating to PPE, but here it is with regards to a liability and hence the reduction in the net assets. Thanks