In the final settlement, of the contingent consideration, which of the following statements is valid? I. If the contingent consideration is classified as equity, the amount shall be measured upon settlement and recognized as part of profit and loss. II. If the contingent consideration is classified as financial liability, the amount shall be measured at fair value upon settlement with any gain or loss recognized as part of profit and loss

In the final settlement, of the contingent consideration, which of the following statements is valid? I. If the contingent consideration is classified as equity, the amount shall be measured upon settlement and recognized as part of profit and loss. II. If the contingent consideration is classified as financial liability, the amount shall be measured at fair value upon settlement with any gain or loss recognized as part of profit and loss

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 3Q

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