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Contingent consideration classified as a FINANCIAL LIABILITY at acquisition is subsequently:
ASubsumed into goodwill
BMeasured at FV with changes in OCI
CFrozen at the acquisition-date fair value
DMeasured at FV at each reporting date with changes in P&L
Answer & Solution
Correct answer: D. Measured at FV at each reporting date with changes in P&L
Ind AS 103 paragraph 58 + Ind AS 109: financial-liability classified contingent consideration is remeasured to FV each period with changes in P&L. Equity-classified contingent consideration is NOT remeasured.
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