CERTYNEX IFRS ACADEMY

After the acquisition date, how does the acquirer treat contingent consideration? More than one answer is possible.

Changes in the fair value of a contingent consideration liability are taken to goodwill, which is adjusted accordingly.

Contingent consideration classified as equity is remeasured at each reporting date, with changes in profit or loss.

Contingent consideration classified as an asset or a liability is measured at fair value, and the changes are recognised in profit or loss.

The settlement of contingent consideration classified as equity is recognised in profit or loss of the settlement period.

Contingent consideration classified as equity is not remeasured, and its settlement is accounted for within equity.