On January 1, 2017, Wolfgang Ltd. paid $1,000 for the option to buy 5,000 of its common

Question:

On January 1, 2017, Wolfgang Ltd. paid $1,000 for the option to buy 5,000 of its common shares for $25 each. The contract stipulates that it may only be settled by exercising the option and buying the shares. How should this be accounted for in the of Wolfgang Ltd.? Assume that Wolfgang Ltd. complies with IFRS.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...