Statement 1: The estimated liability on contingent consideration is based on provisional amount subject to measurement period adjustment. Statement 2: The additional paid in capital on contingent consideration is based on provisional amount not subject to measurement period adjustment. a. Only Statement 1 is correct b. Both statements are correct c. Both statements are incorrect d. Only Statement 2 is correct

Statement 1: The estimated liability on contingent consideration is based on provisional amount subject to measurement period adjustment. Statement 2: The additional paid in capital on contingent consideration is based on provisional amount not subject to measurement period adjustment. a. Only Statement 1 is correct b. Both statements are correct c. Both statements are incorrect d. Only Statement 2 is correct

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 5QE

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Statement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the recognition of the contingent asset, contingent liability, and assets/liabilities with provisional amounts. Statement 2: Measurement period is relevant for the remeasurement fo all contingent considerations. A. Both Statetements are Correct B. Both Statements are Incorrect C. Only Statement 1 is Correct D. Only Statement 2 is Correct
1. Statement 1: Measurement period is relevant if Fair Value of Net Assets of acquiree includes the recognition of contingent asset, contingent liability and assets/liabilities with provisional amounts. Statement 2: Measurement period is relevant for the remeasurement of all contingent considerations. Group of answer choices Both statements are incorrect. Both statements are correct. Only statement 2 is correct. Only statement 1 is correct.
S1: The initial measurement under PFRS 17, is the sum of the fulfillment cash flows and the contractual service expense. S2: The subsequent measurement under PFRS 17, is the sum of the liability for remaining coverage and the liability for incurred claims. Only S2 is correct. Both statements are correct Only S1 is correct. Both statements are incorrect.
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Directions: Please select the appropriate answer on the statement below;B - If the statement is trueS - When the statement is false or part of the statement is false Equity is the residual interest in the company's assets after deducting all liabilities
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34. The following statements are correct, except a. A liability will be reported at less than its maturity amount prior to the maturity date if the stated rate of interest on the liability is higher than the market rate of interest. b. A liability is created because of the acquisition of an asset, payment of another liability, incurrence of an expense, declaration of cash or property dividend, a loss, or a revenue collected in advance. In all cases, each of these “causes” usually provides the basis for measuring the liability. c. Accounts payable with customary term of 18 months is classified as current liability. d. Most liabilities have stated and effective interest rates that are the same; in such a situation the principal, face, and maturity amounts are all the same.
if the unearned interest is credited in the adjusting entry, which of teh following will be affected? a. nominal accountb. capital accountc. liability accountd. asset account
If the difference between the carrying value of the old obligation at the date of restructure and the discounted present value of cash flows of modified obligation is at least 10% of the carrying value of the original obligation, the transaction is accounted for as derecognition of the original obligation and recognition of a new obligation. A. The statement is true B. The statement is false
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1.Which of the following would be the correct adjustment if there was an increase in an accrual? Select one: a. The amount of the increase is deducted (credited) from the expense on the income statement and the increase is added (debited) to the existing accrual in the balance sheet b. The amount of the increase is added (credited) to the expense on the income statement and the increase is deducted (debited) to the existing accrual in the balance sheet c. The amount of the increase is included as an expense (a debit) on the income statement and the increase is added (credited) to the existing accrual in the balance sheet d. None of the above statements are correct 2. If it is known that a debtor cannot pay because of bankruptcy, the amount to be written off is shown as: Select one: a. A credit on the income statement and as a debit on the balance sheet by increasing the amount shown for receivables b. A debit on the income statement and as a credit on the balance sheet by…