- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
- Posts
Sir, For PYQ Specimen exam/ June 2015 Q1 /SBR practice kits mock exam 5
“Kutchen”
Just for the understanding purpose:
1.for the contingent payments of 5m shares on 31 March 2016, the subsequent change will be is financial liabilities/asset or its equity instrument for the next year? as the amt payable is not fixed , therefore should it be financial liabilities?
Thank you.
The contingent consideration is shares not money
Dr Investment in sub
Cr EquityFV measured at SFP date – and not remeasured
If the number of shares was variable – it may be a financial liability – therefore remeasured – but the examiner won’t do anything nasty like that in a mainstream goodwill calculation
Will that possible the number of shares issued is fixed but the total amt payable is variable due to fluctuation of the share price, therefore, should be remeasured as its financial liability?
Thank you.
- The topic ‘Kutchen’ is closed to new replies.