Share based Payment contingent

This topic has 1 reply, 2 voices, and was last updated 9 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
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: 7232
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
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.