Under both IFRS and U.S. GAAP, in an equity-settled share-based payment transaction, how are such payments to non-employees measured?
A) At the cost of the goods or services received.
B) Both standards are silent as to the treatment of payments to non-employees.
C) Always the fair value of the equity instrument.
D) At the fair value of goods or services received, if a reliable determination is available-otherwise, the fair value of the equity instrument.

Question

Quizplus · Accepted Answer

Both IFRS and U.S. GAAP require that payments to non-employees in equity-settled share-based payment transactions be measured at the fair value of goods or services received, if a reliable determination is available, otherwise, the fair value of the equity instrument. This is in contrast to payments to employees, which are always measured at the fair value of the equity instrument under both standards.

Under Both IFRS and U