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1- Contingent share issue should only be regarded as equity if agreement asks for counter party to pay fixed cash/FA for fixed no of equity instrument on occurence of that contingent event. this arises questions:
a-When to recognise it?
if probable?b-No cost:
what if there is no cost for contingent shares ,would it still be regarded as fixed cash = zero ?2-In business combination: contingent consideration is recognised at fair value.
if acquirer issues contingently issuable shares .-recognise it even if it is not probable and even remote as we should do with contingent consideration in form of cash?
We recognise contingent shares at their fair value on acquisition of the subsidiary as we do with contingent cash. Again the fair value is reflective of the likelihood of the issue occurring.
I’m not too sure what your point is with regards to the first point, sorry.
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