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amawesome2
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In the share based payment qs under the ‘a part’ a total of 3m is charged to equity
Is it correct if we write it as equity reserve.In the b part of the same qs under the choice f share or cash settlemnt ,the fv of the servic is determnd by the equit settlement offerd, why cash settlement was nt usd?
In the c part the recoverble value was higher thn the carrying amount f the associate and no gain of investment recorded in parents bk,why?
P2-D2
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Hi,
Yes, if you write equity reserve then that would be fine.
The standard dictates that we use the fair value of the equity instrument to determine the fair value of the service.
The recoverable amount is just used to determine if the investment in associate is impaired, and it isn’t. We don’t perform any revaluation upwards of this investment, we just use equity accounting (cost + % post-acq).
Thanks
amawesome2
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