According to AASB 2,how is the reporting entity to measure the good or services acquired for cash-settled share-based payment transactions?

Question

Quizplus · Accepted Answer

According to AASB 2, the reporting entity must measure the goods or services acquired for cash-settled share-based payment transactions at the fair value of the liability. This means that the entity must estimate the fair value of the liability arising from the transaction, taking into account any vesting conditions, and recognize this amount as an expense in the profit or loss for the period. Therefore, option C is the correct choice as it reflects the requirement of the standard.

According to AASB 2,how Is the Reporting Entity to Measure