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sir in the post-acquisition consolidated Financial statements how is contingent consideration(included as a part of FV of consideration at the time of acquisition, after multiplying it with its probability of occurrence) that is payable to the subsidiary’s former shareholders recorded?
I hope you are not going to reel off lots of standard numbers in the exam as they won’t score marks.
Consideration is cash – re-estimated every year until paid – double entry to P&L
Consideration is shares – no adjustment to consideration irrespective of share price changes.
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