Thanks.
So, based on this I assume we need to include FV of the expected earn out, in sale consideration for 2023, from seller side accounting. Correct?
Should the fv of expected earn out, to be booked in 2023, be based on our best estimate where we will land in terms of receiving the earn out?
Search found 2 matches
- 02 Feb 2024, 04:10
- Forum: IFRS-related topics
- Topic: IFRS 3 - Contingent consideration (Earn-Out) - seller side accounting
- Replies: 4
- Views: 637
- 01 Feb 2024, 14:28
- Forum: IFRS-related topics
- Topic: IFRS 3 - Contingent consideration (Earn-Out) - seller side accounting
- Replies: 4
- Views: 637
IFRS 3 - Contingent consideration (Earn-Out) - seller side accounting
Dear All, We have partially sold one of our group companies in 2023. The SPA has a clause for cash earn out (payable in next 4 years depending on the EBITDA of next 4 years). Buyer has to include this in the purchase price at fair value and book financial liability for this in 2023. I am not sure ab...