IF CONTINGENT CONSIDERATION PAYABLE IN SHARES.THEN HOW SHOULD BE ACCOUNTED AS PER IND AS 103(BUSINESS COMBINATION)?
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If contingent consideration is payable, then we will use FV of today which will be mentioned in the question for calculation of goodwill and it will be shown as a part other NCL/CL, and it will be revalued based every year with FV mentioned and any gain or loss will be transfer to P&L.
BUT IF CONTINGENT CONSIDERATION PAYABLE OTHER THAN CASH I.E PAYBLE IN SHARES.THEN ANY FAIR VALUER CAHNGES THEN IT WHICH ACCOUNT IT SHOULD BE TRANSFERED?
Contingent can be in any form cash or shares, it’s FV for each year will be mentioned because it will be given if certain event or condition is satisfied, which depends on certain probabilities, and instead giving details of probability we are directly provided with FV of Contingent considerations.