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Contingent consideration classified as EQUITY under Ind AS 103 is subsequently:
AReclassified to a financial liability on the first reporting date
BRe-measured to FV with changes through OCI
CRe-measured to FV at each reporting date with changes through P&L
DNOT re-measured; settlement is accounted within equity
Answer & Solution
Correct answer: D. NOT re-measured; settlement is accounted within equity
Ind AS 103 paragraph 58: equity-classified contingent consideration is fixed at acquisition-date FV — no remeasurement; the subsequent settlement is accounted within equity.
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