Which of the Following Best Represents the Guidance Provided by IFRS

question 18

Multiple Choice

Which of the following best represents the guidance provided by IFRS when accounting for shares issued for noncash consideration?

• A) The transaction should be valued at the more reliably measurable amount of the fair value of the goods/services received or the fair value of the shares given up.
• B) The transaction should be valued at the fair value of the shares given up.
• C) The transaction should be valued at the fair value of the goods/services received.
• D) The transaction can be valued at management's choice of either the fair value of the goods/services received or the fair value of the shares given up.

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Definitions:

Individualized

Tailored or customized to meet the unique needs or characteristics of a specific person.

Self-reward

The act of giving oneself a reward to reinforce positive behavior, action, or achievement, often used as a motivational strategy.

Guidelines

Recommendations or principles provided to direct actions or decision-making in specific situations.

Positive Reinforcement

is a behavioral technique that involves providing a reward or positive outcome following a desired behavior, in order to increase the likelihood of that behavior being repeated.