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%
Ask the Tutor ACCA SBR
Share based Payment contingent
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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