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) valuation technique used 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

Question

Quizplus · Accepted Answer

The acceptable measure of fair value of the equity instruments granted is the valuation technique used 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 in accordance with the guidance provided in IFRS 2. A, C, and D are not acceptable measures of fair value.

Which of the Following Is an Acceptable Measure of Fair