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Unformatted text preview: 25th Aug. 2011 Module 3, Group A, GDB 2 RE: Chapter 2 FASB ASC Research and Analysis Case-Consideration or Compensation The FASB ASC (805-10-55-25) is where I gathered information on the acquisition of NaviNow. The criteria for the consideration or compensation are: a) continuing employment, b) duration of continuing employment, c) level of compensation, d) incremental payments to employees, e) number of shares owned, f) linkage to the valuation, g) formula for determining consideration, h) other agreements and issues . The contingent payment, fair value equals to four Million, is the eight million the overall fair value of NaviNow records for the acquisition of the TrafficEye. The agreement or contingency is written as nondependent on whether the employees stay with the company. The agreement consideration uses the criteria for continuing employment and the method constructed used the criteria of a component of earnings . Now, the four individuals that own TrafficEye own all of the shares indicating that the eight million as...
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This note was uploaded on 10/19/2011 for the course ACCT 412 taught by Professor D during the Fall '11 term at Lee.
- Fall '11