In a business combination, Orme SA assumed a contingent liability (a guarantee given to customers) recognised at 200,000 at the acquisition date. At the reporting date, the amount determined under IAS 37 is 140,000 and the cumulative income recognised since the acquisition under IFRS 15 in respect of this guarantee is 30,000. Case convention: the guarantee is not within IFRS 9. Calculate the subsequent measurement of the contingent liability.
- Amount under IAS 37
- 140,000
- Initial amount recognised
- 200,000
- Cumulative income recognised under IFRS 15
- 30,000