When a company's shares are issued in exchange for equipment and the fair values of both are determinable, the equipment will be valued at the fair value of the shares.

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When a company issues its shares in exchange for equipment, the fair value of both the shares and the equipment must be determined. If the fair values of both are determinable, then the equipment will be valued at the fair value of the shares. This is in accordance with the accounting standard IFRS 2, which governs the accounting treatment of share-based payments.

When a Company's Shares Are Issued in Exchange for Equipment