The deadline for comments is April 28 on the Valuations in Financial Reporting (VFR) exposure draft Valuation of Contingent Consideration. The Appraisal Foundation’s Work Group 4 in the “Best Practices for Valuations in Financial Reporting: Intangible Asset Working Group” series issued the exposure draft. It contains detailed discussions of the typical structures of contingent consideration, key valuation issues, valuation techniques deemed to represent best practice, methods for assessing the reasonableness of contingent consideration fair value estimates, and issues at subsequent measurement dates.

Extra: Contingent consideration represented 21% of purchase consideration in 2015, according to a report from Houlihan Lokey on purchase price allocations.