Question
In connection with the immaterial acquisition of Pharma Co. (which is deemed to be a business), Biotech Corp agrees to pay the Seller of Pharma
In connection with the immaterial acquisition of Pharma Co. (which is deemed to be a business), Biotech Corp agrees to pay the Seller of Pharma an additional 5,000 in cash if a pharmaceutical product candidate currently in development by Pharma receives future governmental approval for commercial sale. Accordingly, Biotech records a liability at fair value in the business combination for this contingent consideration arrangement. For each reporting period after the acquisition date until the outcome of the arrangement is settled, what information is Acquirer required to disclose?
No separate disclosures are required; Acquirer will evaluate this acquisition along with all other immaterial acquisitions and provide these disclosures on a collective basis.
Any changes in contingent liability amounts previously recognized, any changes in the range of undiscounted outcomes, an explanation as to the reasons for these changes, and the valuation techniques and key model inputs used to measure the fair value of the contingent consideration liability.
No disclosures are required, either on a separate or collective basis.
Any changes in contingent liability amounts previously recognized, any changes in the range of undiscounted outcomes and an explanation as to the reasons for these changes.
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