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Dear Sir,
In Q11 of Kit BPP, FV of contingent consideration at acquisition date (1 Jun 20X2) is $40m; and at 31 May 20X3, this FV was remeasured at $42m.
Why the increase of $2m of FV of contingent consideration does not affect to goodwill calculation although the FV re-measurement was within 12 months from the acquisition date ?
Thanks
The 12 month period normally relates to the net assets acquired – not the consideration.
Re the consideration:
– if in cash – remeasure
– if equity – do not remeasureDear sir, in mock 1,q1,BPP Kit, the acquisition takes place on 1 Dec 20×3, contingent liability at that date is recognized at FV of 6 ml.In Mar 20×4, there is a revision on estimate of liability to 5ml.Why change in FV of liability is not taken into change in goodwill calculation? Thanks
Sorry sir, please ignore my above question.I have confused.It already adjusted for the calculation of goodwill.
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