Page 137 - Finac1 Test 2 slides

SHARE-BASED PAYMENT

Measurement

• FV of goods and services received

• Unless FV can not be estimated reliably

• Then FV of equity instruments issued

• Goods and other services

• Can usually estimate the FV

• Rebuttable presumption that FV of goods and services can be
measured

• Employee services

• Often granted shares or share options

• Bonus/incentive to align with company performance

• Can not measure value of services received

• Use FV of equity instruments issued

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