Which of the following statements is true about conting consideration under the revised PFRS 3? O Contingent consideration in a business acquisition that is not classified as equity is subsequently re-measured with changes recognize directly in retained earnings. Contingent consideration can be measured at fair value through other comprehensive income. O Contingent consideration obligations are recognized only when the contingency was probable and could be measured reliably. O Contingent considerations in form of equity are not subject to re- measurement.
Which of the following statements is true about conting consideration under the revised PFRS 3? O Contingent consideration in a business acquisition that is not classified as equity is subsequently re-measured with changes recognize directly in retained earnings. Contingent consideration can be measured at fair value through other comprehensive income. O Contingent consideration obligations are recognized only when the contingency was probable and could be measured reliably. O Contingent considerations in form of equity are not subject to re- measurement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Which of the following statements is true about contingent
consideration under the revised PFRS 3?
Contingent consideration in a business acquisition that is not classified as
equity is subsequently re-measured with changes recognize directly in
retained earnings.
Contingent consideration can be measured at fair value through other
comprehensive income.
Contingent consideration obligations are recognized only when the
contingency was probable and could be measured reliably.
Contingent considerations in form of equity are not subject to re-
measurement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86819b3f-1cec-4d49-b0e6-2cf70e7807d9%2F75fb74f6-c1af-4f54-9536-246aaa3875da%2Flfh3xc_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements is true about contingent
consideration under the revised PFRS 3?
Contingent consideration in a business acquisition that is not classified as
equity is subsequently re-measured with changes recognize directly in
retained earnings.
Contingent consideration can be measured at fair value through other
comprehensive income.
Contingent consideration obligations are recognized only when the
contingency was probable and could be measured reliably.
Contingent considerations in form of equity are not subject to re-
measurement.
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