Question
In periods subsequent to the acquisition date in a business combination, how should an acquirer measure contingent liability assumed? Assume the contingencies were recognized as
In periods subsequent to the acquisition date in a business combination, how should an acquirer measure contingent liability assumed? Assume the contingencies were recognized as of the acquisition date. (You will need to look in the codification for this answer.)
a. Perform a present value calculation
b. Develop a systematic and rational basis for subsequently measuring of the contingent liability
c. Acquired contingent liabilities are measured at the date acquired with no subsequent adjustments
d. It should be amortized over the estimated affected period
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