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Unformatted text preview: In other words, under the acquisition method, the fair value of the consideration transferred in measuring the acquirers interest in the acquired business. And items of consideration do not only include cash, but also securities, property, and obligations. Hoyle also states that the acquisition method treats contingent consideration obligations as a negotiated component of the fair value of the consideration transferred, consistent with the fair value measurement attribute. Therefore the additional $8 million that are part of the agreement will have to be recorded in the as a component to the acquisition of the company. However the wages that will be paid to the owners when they will be contracted as employees of the company will be considered wages expenses....
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- Spring '11