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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Contingent Liability in Group scenarios
Hello,
in doing the Viagem Co group consolidated statement of Profit or Loss and calculating goodwill on acquisition of a subsidiary there is a mention of a contingent liability in relation to a group.
It rings a bell from one of the lectures, but I cannot recall what it was and unfortunately I cannot fnd it anywhere. Could you please remind me what it was? I only seem to remember that it was supposed to be a current liability?
I would appreciate your help.
Hi,
The contingent liability within the subsidiary is recorded at fair value within the group accounts. This adjustment will reduce the net assets at acquisition as we are recording a liability.
Thanks