Baker Tilly’s Donna Wilcox
unpacks how entities should account for contingent payments following
an acquisition, with reference to key guidance in IFRS 3
IFRS 3 Contingent payments in financial statements
Entity C is controlled by Entity B. Key employees of Entity
C also hold shares in Entity C. On 31 October 2012, Entity A obtained
control of Entity C (the ‘business combination’). Per
the acquisition agreement, Entity C’s shareholders receive
£4m in cash at the acquisition date plus future cash payments
that are contingent upon the earnings of Entity C for the next two
years.
Con
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