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IFRS 3 CONTINGENT LIABILITIES

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 3 CONTINGENT LIABILITIES

  • This topic has 4 replies, 3 voices, and was last updated 5 years ago by Stephen Widberg.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • October 20, 2019 at 10:37 pm #550299
    ginetta86
    Participant
    • Topics: 18
    • Replies: 40
    • ☆☆

    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

    October 21, 2019 at 9:09 am #550326
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3404
    • ☆☆☆☆☆

    Boxo 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

    October 24, 2019 at 8:17 am #550587
    asaadimran1999
    Participant
    • Topics: 1
    • Replies: 3
    • ☆

    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

    October 24, 2019 at 8:43 am #550595
    ginetta86
    Participant
    • Topics: 18
    • Replies: 40
    • ☆☆

    Excellent explanation, thank you

    October 24, 2019 at 1:25 pm #550664
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3404
    • ☆☆☆☆☆

    I think you need to watch our lectures on consolidation. If you are struggling with the basic concepts, please also review the Financial Reporting lectures.

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
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