When a contingent consideration arising from a business combination is classifled as equity, how is any change in its fair value accounted for if the difference arises due to a change in circumstances? Multiple Choice As a memorandum entry indicating that additional shares hed been issued, As an edjustment to an estimate ineluded in the determination of net income.
When a contingent consideration arising from a business combination is classifled as equity, how is any change in its fair value accounted for if the difference arises due to a change in circumstances? Multiple Choice As a memorandum entry indicating that additional shares hed been issued, As an edjustment to an estimate ineluded in the determination of net income.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 5MC
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![When a contingent consideration arising from a business combination is classified as equity, how is any change in its fair value
accounted for if the difference arises due to a change in circumstances?
Multiple Choice
As a memorandum entry indicating that additional shares hed been isued,
As an edjustment to an estimate included in the determination of net income.
As an adjustment to consolidated contributed surplus.
As an adiustment to the consideration naid for the subsidiarv](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc098fe48-a884-469f-b06b-e645dd891d79%2Ff1d8b86e-c19c-40b7-98e6-38420745fe82%2Fft5wnz9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:When a contingent consideration arising from a business combination is classified as equity, how is any change in its fair value
accounted for if the difference arises due to a change in circumstances?
Multiple Choice
As a memorandum entry indicating that additional shares hed been isued,
As an edjustment to an estimate included in the determination of net income.
As an adjustment to consolidated contributed surplus.
As an adiustment to the consideration naid for the subsidiarv
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