Issue of shares in exchange for shares of another entity in a purchase transaction of the net assets of an entity in a business combination is within the scope of AASB 2 Share-based Payment.

Question

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AASB 2 Share-based Payment specifically excludes from its scope share-based payment transactions in a business combination to which AASB 3 Business Combinations applies, including transactions in which an entity acquires net assets that constitute a business.

Issue of Shares in Exchange for Shares of Another Entity