Which of the following statements is incorrect of equity-settled share-based payment transactions?
A) These are transactions in which the entity receives goods and services as consideration for shares or share options issued by the entity.
B) There is a presumption that the fair value of the transactions with other parties (other than employees) can be measured reliably.
C) The fair value of equity-settled instruments is required to be re-estimated at balance date.
D) The entity shall recognise a corresponding increase in equity if the goods or services were received in an equity-settled share-based payment transaction.

Question

Quizplus · Accepted Answer

The fair value of equity-settled instruments is generally not re-estimated at each balance date. Instead, it is measured at grant date for transactions with employees and others providing similar services. For transactions with parties other than employees, the fair value of the goods or services received is used, and if it cannot be estimated reliably, the fair value of the equity instruments issued is used. This value is not typically re-estimated in subsequent periods.

Which of the Following Statements Is Incorrect of Equity-Settled Share-Based