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AASB 3 - Business Combinations - March 2008
Contingent liabilitiesContingent liabilities
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Contingent liabilities
56 After initial recognition and until the liability is settled, cancelled or expires, the acquirer shall measure a contingent liability recognised in a business combination at the higher of:
(a) the amount that would be recognised in accordance with AASB 137; and
(b) the amount initially recognised less, if appropriate, the cumulative amount of income recognised in accordance with the principles of AASB 15 Revenue from Contracts with Customers.
This requirement does not apply to contracts accounted for in accordance with AASB 9.