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Payments which are ascertainable but contingent are treated in the same way as all other ascertainable amounts.

»Ê¹ÚÌåÓýapp wording of the agreement will link the liability to pay the future amount or amounts with the occurrence or non-occurrence of a particular event.

Examples of ascertainable but contingent payments are

• the agreement for the sale of a business provides for a consideration of £250,000, of which £200,000 is payable on completion and £50,000 is payable if the profits of the year following the date of disposal exceed £100,000, or
• the agreement for the sale of a piece of land provides for a consideration of £75,000, of which £50,000 is payable on completion and £25,000 is payable if planning permission is granted within two years of the date of the disposal.

»Ê¹ÚÌåÓýapp defining feature of ascertainable deferred consideration is that all of the events which affect the AMOUNT occur before the date of the disposal.