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Goodwill and contingent assets/liabilties

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Goodwill and contingent assets/liabilties

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarStephen Widberg.
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  • November 5, 2022 at 11:05 am #670708
    Avatarsjustin
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    In calculating goodwill how would deal with a legal claim against a subsidiary which is regarded as possible?

    I’m quite confused on this question, is it meaning that it should be in your goodwill calculation ?

    November 5, 2022 at 11:50 am #670710
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    Yes – recognise all liabilities, no matter how remote, at fair value.

    IFRS 3 rules on contingencies are completely different to IAS 37.

    You may find it useful to watch our lectures on this again.

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