Discuss the Hierarchy to Follow in Determining Which Fair Values

question 9

Essay

Discuss the hierarchy to follow in determining which fair values to use in a share-based payment transaction that is consistent with AASB 2.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains account information relating to specific areas like accounts receivable or payable, supporting the general ledger.

General Ledger

The master set of accounts that aggregates all transactions recorded for a business.

Subsidiary Ledger

A detailed ledger that contains the supporting documents for a specific main account, such as accounts payable or receivable, to keep the general ledger uncluttered.

General Journal

A primary accounting record where financial transactions are initially recorded, before posting to specific accounts in the ledger.