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:

Erupting Volcano

A geological event where molten rock, ash, and gases escape from a crack in the Earth's surface.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.

Crystalline Structure

A unique arrangement of atoms in a crystal, characterized by its highly regular order and symmetry.

Mineral

A naturally occurring, inorganic solid with a definite chemical composition and a crystalline structure.