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Chapter 9
Equity-settled schemes
2.1 The accounting entry
When an entity receives a good or a service as a result of an equity-settled share-
based payment, it posts the following accounting entry:
Dr Asset/Expense X
Cr Equity X
2.2 Valuation
VALUATION
Used to pay Used to pay
suppliers employees
Direct method Indirect method
Value at fair value Value at fair value
of item purchased of equity instrument
at the grant date.
The grant date is the date at which the entity and the other party agree
to the relationship
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