What Value Should Be Recorded as the Fair Value of a Contingent

question 43

Multiple Choice

What value should be recorded as the fair value of a contingent consideration arising from a business acquisition when it is classified as a liability?

• A) The undiscounted maximum amount that could be paid.
• B) The discounted present value of the maximum amount that could be paid.
• C) The undiscounted probabilistic estimate of the amount to be paid.
• D) The discounted probabilistic estimate of the amount to be paid.

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