Craft, I think it is impossible to know for certain at exactly...

Craft,

I think it is impossible to know for certain at exactly what carrying value PRG will account for the acquisition of SKE in its books, because but if I was to hazard a guess I'd say that it would have to be on the ex-dividend (i.e., PRG's dividend) basis.

But then there is also the adjustment that would need to be made for whatever final dividend (ordinary and/or special) the SKE board decides to declare because, as you know the cash consideration payable by PRG is to be diminished by any such dividend(s).

So I 'm afraid you are trying to solve n equations with n+1 variables.


As for the contingent consideration write-off, are you sure it hasn't simply been the disbursement of the consideration in the periods you are reviewing that has reduced the deferred consideration balance? Which would make the absence of goodwill impairment consistent with acquisition accounting practice.

But you are right, it will all become academic in a few months' time.