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IFRS 3 Business Combination

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 3 Business Combination

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarP2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • July 4, 2019 at 1:31 am #521757
    Avatarresearcher1
    Member
    • Topics: 36
    • Replies: 6
    • ☆

    IFRS 3 requires contingent consideration to be included at fair value as part of the purchase consideration at the date of acquisition. This is in keeping with the computation of goodwill.

    Contingent consideration may also result in the return of assets to the acquirer. How is this treated at acquisition when computing goodwill?

    Kindly advise sir.

    July 5, 2019 at 10:21 pm #522003
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    The contingent consideration will be measured at fair value. Why would it be any different?

    Thanks

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