AASB 2 requires that good and services received in an equity-settled share based transactions be measured in reference to fair value of equity instruments granted.

Question

Quizplus · Accepted Answer

AASB 2 does require that the goods and services received in an equity-settled share-based transaction be measured at the fair value of the equity instruments granted. This is because equity-settled share-based transactions involve the issuance of equity instruments, such as shares or stock options, in exchange for goods or services provided by employees or other parties. In order to account for these transactions properly, the fair value of the equity instruments must be recognized as the cost of the goods or services received.

AASB 2 Requires That Good and Services Received in an Equity-Settled