Hi,
I have taken this from the SBR Technical article for IFRS 3
It states: "contingent liabilities are re-valued after the date of the business acquisition at the higher of the original amount and the amount under the relevant standard."
Are you able to explain further what this means?
Many thanks
Ask the Tutor ACCA SBR
IFRS 3 CONTINGENT LIABILITIES
6y ago#1Boxo Ltd is being sued for breach of contract. The outcome is POSSIBLE. So it will DISCLOSE a contingent liabitly.
When Boxo is taken over by Soxo Ltd, the liability will be RECOGNISED in the group accounts at FAIR VALUE
At the next year end Soxo must go for the GREATER of:
1. RECOGNISING the Liability At fair value
2. DISCLOSING the contingent liability
So this means that Soxo will continue To recognise the liability At fair value
Hi Stephen,
I wanted to know the definition/concept of the following:
1.Goodwill
2.Non Controlling Interest
3.Unrealised Profit
Thank you for your co-operation
Excellent explanation, thank you
6y ago#4I think you need to watch our lectures on consolidation. If you are struggling with the basic concepts, please also review the Financial Reporting lectures.
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