Section 58 in The Companies (Indian Accounting Standards) Rules, 2015
58. Some changes in the fair value of contingent consideration that the acquirer recognises after the acquisition date may be the result of additional information that the acquirer obtained after that date about facts and circumstances that existed at the acquisition date. Such changes are measurement period adjustments in accordance with paragraphs 45-49. However, changes resulting from events after the acquisition date, such as meeting an earnings target, reaching a specified share price or reaching a milestone on a research and development project, are not measurement period adjustments. The acquirer shall account for changes in the fair value of contingent consideration that are not measurement period adjustments as follows:
(a)Contingent consideration classified as equity shall not be remeasured and its subsequent settlement shall be accounted for within equity.(b)Other contingent consideration that:(i)is within the scope of Ind AS 109 shall be measured at fair value at each reporting date and changes in fair value shall be recognized in profit or loss in accordance with Ind AS 109.(ii)is not within the scope of Ind AS 109 shall be measured at fair value at each reporting date and changes in fair value shall be recognized in profit or loss.Disclosures
