How is contingent consideration accounted for in an acquisition business combination transaction?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (4 reviews)
The fair value approach of the acquisition method views contingent payments as p...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
a. What is a bargain purchase and how are bargain purchases accounted for in an acquisition business transaction? b. How does a parent company account for the sale of a portion of an investment in a...
-
Bale Co. acquired Silo Inc. on December 31, 20X1, in an acquisition business combination transaction. Bale's net income for the year was $1,400,000, while Silo had net income of $400,000 earned...
-
What is meant by contingent consideration and how is it accounted for?
-
Write a Summary of Tartuffe the Norton anthology of western literature.
-
At a particular axial station, velocity and temperature profiles for laminar flow in a parallel plate channel have the form u(y) = 0.75[1 (y/y o ) 2 ] T(y) = 5.0 + 95.66(y/y o ) 2 47.83(y/yo) 4...
-
Consider the heat treating data in Table B.12. Split the data into prediction and estimation data sets. a. Fit a model to the estimation data set using all possible regressions. Select the minimum...
-
The measured shaft torque on the turbomachine shown in Fig. P12.2 is \(-60 \mathrm{~N} \cdot \mathrm{m}\) when the absolute velocities are as indicated. Determine the mass flowrate. What is the...
-
1. What type of organizational structure does LMVH have? 2. What is the role of SBUs in the organizational structure of LVMH? What problems might arise if each SBU were run independently? 3. Compare...
-
Theory of Planned Behavior Sometimes people would like to change their behaviors. For example, they smoke and want to stop smoking, or they perennially are late to meetings and want to be on time....
-
Steve Zucker started his accounting practice on December 1, 2021. The name of the business is Accounting for You. The following transactions occurred during the month of December. Opened a bank...
-
Assume that Bellington paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs. Required: For Goodwill, determine what balance would be included in a...
-
What does the ceteris paribus assumption mean?
-
In which approach is the balance of the Allowance for Doubtful Accounts considered when the estimate of Bad Debts Expense is made? Please explain.
-
Cash Flow for ABC Hotel July August September Opening Balance $ 85,000 $ 88,450 ? Cash Incoming Sales $ 67,000 $ 64,399 $ 62,500 Asset Sales $ 1,200 $ - $ - Debtor Receipts $ 2,500 $ 2,800 $ 1,300...
-
Sessions Manufacturing Company needs to expand their existing facility and needs to secure $35 million in financing to fund the expansion. Ben Bates, the CFO of Sessions Manufacturing Company, has...
-
Cash Flow for ABC Hotel July August September Opening Balance $ 85,000 $ 94,450 ? Cash Incoming Sales $ 67,000 $ 64,399 $ 70,500 Asset Sales $ 1,200 $ - $ - Debtor Receipts $ 2,500 $ 2,800 $ 1,300...
-
If f(x)= x^2, what are all possible values of b if g(x)= 4f(x) is identical to h(x)= f(bx) If f(x) = x , what are all possible values of b if g(x)= 9f(x) is identical to h(x)= f(bx) If f(x)= x, what...
-
The new management of a local hotel decided to update their recently acquired (and very outdated) property by installing wireless Internet service for their guests. They are also considering updating...
-
Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated...
-
The column shown in the figure is fixed at the base and free at the upper end. A compressive load P acts at the top of the column with an eccentricity e from the axis of the column. Beginning with...
-
As of June 30, Year 1, the bank statement showed an ending balance of $16,878. The unadjusted Cash account balance was $15,239. The following information is available: 1. Deposit in transit, $2,190....
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
-
Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small...
Study smarter with the SolutionInn App