AASB 2 Requires That the Fair Value of the Option

question 77

True/False

AASB 2 requires that the fair value of the option issued as a share-based payment to an employee,be determined and this value be deemed to be the cost of the options.

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Definitions:

Total Product Curve

A graph that illustrates the total quantity of output produced by a firm as a function of the total quantity of a single input used, holding all other inputs constant.

Variable Input

Any production input that can be varied in the short term to increase or decrease output, such as labor or raw materials.

Output

The total amount of goods or services produced by a company or country.

Marginal Product Curve

A graphical representation showing how the additional output of a firm varies with the addition of one more unit of a variable input, holding all other inputs constant.