When shares are issued for services or non-cash assets, the shares should be recorded at the fair value of the services or noncash assets.

Question

Quizplus · Accepted Answer

The shares should be recorded at the fair value of the services or non-cash assets received because it provides a more accurate representation of the transaction's economic reality. This approach aligns with the principle of fair value accounting.

When Shares Are Issued for Services or Non-Cash Assets, the Shares