The additional consideration owed by Lilas SA to the former owners of Mûre SA, indexed to future sales, is classified as a liability. Its fair value was 410,000 at the acquisition date; it is 475,000 at the reporting date, after better commercial performance by Mûre since the combination. Record the remeasurement entry at the reporting date.
- Fair value at the acquisition date
- 410,000
- Fair value at the reporting date
- 475,000