- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Hi I am really struggling with trying to understand what variable consideration is can you kindly explain to me and give examples please.
Thank you.
NishaHi,
Variable consideration is when the payment to acquire a subsidiary will change dependent on how successful the acquisition is.
An initial payment is made to gain control but then in the future the acquirer may pay additional sums if the subsidiary performs well. Dependent on how well it performs then depends on the level of consideration paid.
Thanks
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.