The seller’s contingent consideration

Date recorded:


The IFRIC considered the accounting for contingent consideration received by the seller in a business combination.  The IFRIC noted that when accounting for contingent consideration received by the seller, one of the questions to consider is whether IAS 37 Provisions, Contingent Liabilities and Contingent Assets or


Decision not to add

August 2002



The IFRIC agreed not to require publication of an Interpretation on this issue because:

(a) it is not pervasive in practice; and

(b) the Board is currently looking at contingent consideration from the purchaser’s perspective as part of its Business Combinations Phase II project.


IFRIC reference: IFRS 3

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