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Ask the Tutor ACCA SBR

Share based Payment contingent

ZZulfiqar10y ago
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%
P2-D2P2-D2Tutor10y ago#1
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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