Hi all
Where I work, a business is being acquired and the consideration is
Cash 100k and
100k provision of business support such as office space, business development advise, tech support
For the non cash consideration I would consider a liability of 100k for the provision of services. How would this liability settled?
-Debit liability
-Credit a contra account of the expenditure incurred by the acquiring business? For example, the salary of the people working on those services?
Thanks