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Ask the Tutor ACCA SBR

Equity settled share based payments – goods

Rray5y ago
Hi Sir, I was watching the video quoted above; for the answer you said Dr purchases $10m Cr $Equity $10m. Do we go by the assumption that, if the shares for example say had nominal value of $1 we issue 10 million? Or do we issue based on market trading price? Also what is difference between market price and options price? Regards
stephenwidbergstephenwidbergTutor5y ago#1
Find the FV of the goods or services, and post Dr Purchases Cr Equity There will be a share premium but don't go on about it in this exam! FV of shares issued / options to buy shares is completely irrelevant.
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