Hello,
In SAR, cash based payment, we have the instinct value.
1. Could you please explain this? I am bit confused to understand the concept.
2. It is also mentioned that the instinct value of SAR will equal its fair value. What does that mean?
Thanks
Ask the Tutor ACCA SBR
IFRS 2
2y ago#1Imagine that a Big Mac costs 10.
You have an option to buy the Big Mac for 6.
The intrinsic value is 4 - your saving - also its fair value.
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