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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
O Neither I nor II
Both I and II
O Il only
O I only
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