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Share based Payment contingent

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Share based Payment contingent

Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • October 25, 2016 at 5:14 pm #345999
    zulfi245
    Member
    • Topics: 65
    • Replies: 37
    • ☆☆

    Contingent Consideration in form of cash is recorded at fair value that takes into account of present value.right?

    What if contingent consideration in form of shares and we have various expectation levels of chances of share payment.

    1.0%
    2.20%
    3.50%
    4.70%

    October 26, 2016 at 8:44 pm #346184
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7211
    • ☆☆☆☆☆

    Hi,

    I memory serves me right then we record the contingent share consideration at fair value, whereby the fair value takes into consideration the expectation levels.

    So the fair value would likely be higher at a 70% chance than a 20% chance.

    Thanks

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