For a Corporation Reporting Under IFRS, When Shares Are Issued

question 107

Multiple Choice

For a corporation reporting under IFRS, when shares are issued for a noncash consideration and a ready market for the shares exists, they are recorded at

• A) zero.
• B) the fair value of the shares.
• C) the fair value of the assets acquired.
• D) the average of the fair value of the shares and the fair value of the assets acquired.

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Definitions:

Parameters

In statistics, parameters are numerical characteristics of a population, such as mean or standard deviation, that are typically unknown and estimated from sample data.

Statistics

The study of the collection, analysis, interpretation, presentation, and organization of data.

Hypotheses

Plural form of hypothesis, these are tentative explanations or predictions that can be tested through research and experimentation.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much values differ from the mean.