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Equity settled share based payments – goods

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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March 25, 2021 at 9:59 am #615177
shah19888888
- Topics: 18
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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
March 25, 2021 at 3:12 pm #615190
Stephen Widberg
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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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