IFRS 3Chapter 9Lesson 2
Contingent consideration: at acquisition, classification and subsequent measurement
Step 1 of 7Learning objectives
Go deeper+1 deeper insight · +1 point of attention
Contingent consideration is part of the consideration transferred at fair value; its classification as a liability or equity decides what follows: a liability is remeasured at fair value through profit or loss, an equity instrument is not remeasured.
50 minNot started
Learning objectives
- Measure contingent consideration at the acquisition date from scenarios and a rate given by the case.
- Explain why classification as a liability or equity decides subsequent measurement.
- Calculate and record the remeasurement and settlement of contingent consideration.