Isn’t the contingent consideration and contingent liabilities of the subsidiary measured at fair value when consolidating.? this fair value is calculated as a discounted payment weighted with probability , right? if so, shouldn’t we have to unwind the discount back at the year end? I haven’t seen any questions i did follow this.
Also, if we unwind, that will be within the measurement period. does that trigger the goodwill at acquisition to be recalculated? . . /’
1. Only unwind if there’s some kind of hint in the question – you would do it for deferred consideration, but for contingent consideration you’ll just be given an estimate. 2. unwinding is not re-assessing FV at measurement date – so no impact on goodwill.