Which of the following is an acceptable measure of fair value of the equity instruments granted?
A) Cost of the equity instrument at initial recognition.
B) Estimate using a valuation technique to estimate what the price of the equity instruments would have been on the measurement date in an arm's length transaction between knowledgeable, willing parties.
C) Fair value of a similar equity instrument.
D) Net realisable value of the equity instrument
E) All of the given answers.

Question

Quizplus · Accepted Answer

The most acceptable measure of fair value of equity instruments granted is the estimate using a valuation technique to estimate what the price of the equity instruments would have been on the measurement date in an arm's length transaction between knowledgeable, willing parties. This is because it considers external factors and market conditions that affect the value of the equity instrument.

Which of the Following Is an Acceptable Measure of Fair