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How is a reduction in the value of contingent consideration accounted for in the accounts of the individual companies and the group
What is the entry for a reduction in the value of contingent consideration
Why is a contingent consideration accounted for in the financial statements of the individual company whilst it is a contingent liability for which there is a disclosureContingent consideration is adjusted to fair value and any change recorded through profit or loss and hence the group retained earnings. Based on this, how would you think the entry is?
Sorry, but I don’t quite follow the last question in the post. If you elaborate further then I could help.
Is the retained earnings of the parent adjusted or the subsidiary adjusted for a change in the value of contingent consideration
If a contingent consideration is a contingent liability for the parent, then why is it not disclosed and instead appears on the individual accounts of the parent company
Parent as they are making the acquisition and will be paying the amount.
Don’t confuse a contingent liability with contingent consideration they are two totally separate things and not related.
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