IASB plans to bring IAS 28 rules on contingent consideration into line with IFRS 3
At its June meeting, the IASB continued deliberations on the Equity Method project (for which the Board is planning to publish an exposure draft in 2024).
Keywords: Mazars, Thailand, IASB, IFRS3, IAS 28, contingent consideration
3 August 2023
The IASB tentatively decided to bring the accounting treatment for contingent consideration related to the acquisition of an interest in an associate into line with the accounting treatment set out in IFRS 3.
More specifically, when an investor acquires an interest in an associate, it would measure contingent consideration at fair value. If the contingent consideration is classified as equity, the investor would then account for its subsequent settlement within equity. For other contingent consideration, the investor would measure it at fair value at each reporting date and recognise changes in fair value in profit or loss.
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