When a company issues shares to acquire non-cash assets or services,they should record the asset or services received at the market price of the share on the date they acquired the non-cash assets or services when the market price reflects an actively traded share.

Question

Quizplus · Accepted Answer

This is in accordance with the accounting principle of recognizing assets at their fair market value. If the market price of the share reflects an actively traded share, it is an appropriate basis for valuing the non-cash assets or services received.

When a Company Issues Shares to Acquire Non-Cash Assets or Services,they