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Ifrs 3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Ifrs 3

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
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  • May 30, 2014 at 10:17 am #171856
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    In an acquisition,what is the parent has to pay some additional amount to the owners of the subsidiary if a specific condition is met post acquisition but that condition is unlikely to be met?
    Do we take it as part of the cost of investment?

    Thanks in advance

    May 30, 2014 at 2:02 pm #171916
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Yes! That’s one of the (many) interesting bits about IFRS 3 – we need to take full account of contingent consideration payable even though the probability of the contingency occurring is “remote”

    Very strange!

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