On acquiring Sorgue SA, the former owners contractually agree to indemnify the acquirer for a tax dispute: the liability recognised is 320,000 and the indemnity is contractually capped at 250,000. Case convention: recoverability of the indemnity is taken for granted. Calculate the indemnification asset.
- Indemnified liability recognised
- 320,000
- Contractual cap on the indemnity
- 250,000