Page 427 - SBR Integrated Workbook STUDENT S18-J19

Answers

Chapter 10

Example 1

Equity-settled scheme

This is an equity settled share-based payment with a supplier. The transaction
is valued at the fair value of the asset received – i.e. $10 million.

The transaction is accounted for in full at the grant date because there are no
further conditions to be met.

Dr Property, plant and equipment $10m

Cr Share capital $1m

Cr Share premium/other components of equity $9m

The building will be depreciated over its useful economic life of 50 years,
giving a current year charge of $0.2 million.

Dr Depreciation expense $0.2m

Cr Property, plant and equipment $0.2m

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