At the acquisition date, the contingent consideration is:
A)Measured at book value.
B)Classified either as equity or as a liability.
C)Classified as equity.
D)Classified as a liability.

Question

Quizplus · Accepted Answer

Contingent consideration at the acquisition date can be classified either as equity or as a liability, depending on the specific terms and conditions of the contingent consideration arrangement.

At the Acquisition Date, the Contingent Consideration Is