Why Are Equity Instruments in a Share-Based Payment Transactions Modified

question 6

Essay

Why are equity instruments in a share-based payment transactions modified?
What is the accounting treatment for such modifications that is consistent with AASB 2?

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Definitions:

M'Naghten Rule

A legal principle that defines the insanity defense by assessing if a defendant was unable to understand the nature of their actions or distinguish right from wrong at the time of the crime.

Irresistible Impulse Test

A legal test for insanity that assesses if a defendant was unable to control his or her actions due to a mental illness.

Civil Commitments

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a hospital or community-based setting.

Involuntarily

Occurring without one's consent or control.