Which of the Following Is an Acceptable Measure of Fair

question 36

Multiple Choice

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) Estimate using a valuation technique 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
• E) All of the given answers.

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Definitions:

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.

Gross Pay

The total earnings of an employee for a payroll period.

Discounted Note

A type of debt instrument that is sold for less than its face value and pays its face value at maturity, reflecting the discount as interest.