FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A contingent liability assumed in a business combination:

a. Is not accounted for by the acquirer if the contingent liability has an improbable outflow of economic resources.

b. Is recognized even if it has an improbable outflow of economic resources for as long as there is present obligation and the fair value of the obligation can be measured reliably

c. Is recognized only if there is present obligation, probable outflow of economic resources, and can be measured reliably.

d. Are not accounted for by the acquirer if the contingent liability has an improbable outflow of economic resources and recognized only if there is present obligation, probable outflow of economic resources, and can be measured reliably.

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