How is earn-out / contingent consideration treated at acquisition date and subsequently?

At acquisition date, contingent consideration is measured at fair value and included in purchase consideration, increasing goodwill if positive. Subsequent accounting depends on classification. Liability-classified earn-outs are remeasured through P&L as expectations change. Equity-classified earn-outs are generally not remeasured. In models, earn-outs affect goodwill, future P&L volatility, and cash outflows when paid.