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Hello dear tutor…
In june 2015-Q3-b:
1-klancet has agreed to SELL a patent right to Jancy and recieves Jancy’s share.
2-klancet won an arrangement to ACQUIRE a patent and the purchase price was settled issuing its own sahres.
The examiner said:
1 should be treated according to the IFRS 9 financial instrument but 2 should be treated according to the IFRS 2 share based payment(equity settled).Is it correct to say for the reason:
In share base payment,we pay shares(equity settle) or based on share price(cash settled) in return for goods or service RECIEVED…So 1 is not related to IFRS 2 because we SELL the patent and hence do NOT recieve a good,
But 2 is related to IFRS 2 because we acquire(and hence RECIEVE) a good(ie patent)?Thanks alot
Hi,
Yes, the first situation we are receiving shares in Jancy, so we are not issuing them. IFRS 2 only deals with the issue of shares in return for goods or services. In the first situation we are not receiving any goods or services.
In the second scenario we are receiving goods, the patent, so the transaction is dealt with under IFRS 2.
Thanks
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