Page 138 - SBR Integrated Workbook STUDENT S18-J19
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Chapter 10
Example 1
Equity-settled scheme
On 1 January 20X1, Bragi purchased a factory building with a useful economic
life of 50 years. The building had a fair value of $10 million. The consideration
Bragi transferred for the purchase was 1 million of its own $1 equity shares,
which had a total fair value of $12 million.
Explain how this transaction should be accounted for in the year ended
31 December 20X1.
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