Which of the Following Statements in Relation to Contingent Consideration

question 27

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 are accounted for through profit and loss.

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Definitions:

Pascal's Triangle

A triangular array of numbers where each number is the sum of the two numbers directly above it, representing the coefficients in the expansion of a binomial power.

\(9\)

A numeric value representing a square number, resulting from multiplying three by itself.

Pascal's Triangle

A triangular array of numbers where each number is the sum of the two numbers directly above it, representing the coefficients in the expansion of a binomial.

Expression

A combination of symbols and numbers that represents a mathematical quantity or relationship.