-Contingent consideration should not be recognised in individual accounts of parent ,and will only be recorded in consolidated accounts.right?
if after acquisition contingent consideration in form of cash Changes should be treated as per ias -37 . So we will keep recognizing consideration though it is contingent but treat it as a provision of ias 37 and provision measurement rules will apply?
Ask the Tutor ACCA SBR
post acquisition changes in fair value of contingent consideration
Explaining above:
ias 37 applies to post acquisition changes in fair value of contingent consideration but would it be limited to just measurement and a contingent consideration (even remote) will still be in accounts according to the measurement rules of ias 37 (provision rules or contingent liability rules?)
9y ago#2Hi,
We recognise contingent consideration in the parent's accounts at fair value. Any changes in fair value are processed through the parent's retained earnings.
It is IFRS 3 and not IAS 37.
Thanks
Sign into reply to this topic.