IFRS 3 Business combination

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August 13, 2019 at 11:02 am #527332
researcher1
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At time of acquisition of a subsidiary, why don’t we recognize a contingent asset of the subsidiary. I know this is done for a contingent liability but why not for an asset?

Please say sir.
August 14, 2019 at 10:10 am #527538
P2-D2
Keymaster
- Topics: 4
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Hi,

It isn’t prudent to recognise an asset so it isn’t recognised in the group accounts.

Thanks
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