Which of the Following Statements in Relation to Contingent Consideration

question 34

Multiple Choice

Which of the following statements in relation to contingent consideration is incorrect?

• A) At acquisition date, contingent consideration is measured at fair value.
• B) Where the contingent consideration is classified as equity, there is no remeasurement required on settlement.
• C) Subsequent adjustments to contingent consideration affect the goodwill calculated at acquisition date.
• D) Changes in the amount of an expected cashflow where the contingent consideration represents a liability that is within the scope of AASB 137/IAS 37 are accounted for through profit and loss.