Having Recognized a Contingent Consideration and Classified It as Equity

question 42

Multiple Choice

Having recognized a contingent consideration and classified it as equity, the subsequent treatment is:

• A)It is re-measured at fair value with changes in the income statement.
• B)It is carried at book value with no adjustments made.
• C)No remeasurement is required and the subsequent settlement is accounted for within equity.
• D)It is re-measured at fair value with changes in OCI.

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Definitions:

Social Activity

Participation in events or interactions with others that provide enjoyment, leisure, or cultural experiences, often conducive to fostering relationships.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Moral Minimum

The concept that businesses should at least avoid causing harm and engage in ethical behavior that meets a basic level of moral conduct.

Triple Bottom Line

The Triple Bottom Line refers to a framework that evaluates a company's performance based on three factors: social, environmental, and financial.