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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Contingent liability of sub on acquisition
General rule is that contingent liability of sub needs to be recognised on acquisition.
But in one of the questions I did ‘Joey’, the contingent liability is added only in @acq and not in @reporting as well in (W2) Net assets
Why is this the case?
Presumably as the liability had been settled by the reporting date.
Thanks
