Business Combinations F32-17b

There are significant differences between U.S. GAAP and IFRS in accounting for contingencies acquired or assumed in a business combination. What are the differences?

  1. Under U.S. GAAP, both contingent assets and contingent liabilities are recognized. A distinction is made between contingencies that are contractual and those that are not contractual.
  2. Under IFRS, contingent assets are not recognized. Contingent liabilities are recognized if they:
    1. Are a present obligation that arises from a past event, and
    2. Fair value can be measured reliably
April 29, 2018 | |