On acquiring Opale-Net SA, the obligation to pay additional consideration, classified as a liability under IAS 32, was measured at 190,000 at the acquisition date. At the reporting date, its fair value is 232,000, after a favourable development of the business since the combination. Case convention: subsequent measurement is at fair value and not at amortised cost. Record the remeasurement entry at the reporting date.
- Fair value at the acquisition date
- 190,000
- Fair value at the reporting date
- 232,000