Question
A contractor has been appointed to complete alterations to buildings owned by Bangkok. The contract price is fixed at BD2,200,000. After completion of specific milestones,
A contractor has been appointed to complete alterations to buildings owned by Bangkok. The contract price is fixed at BD2,200,000.
After completion of specific milestones, the work is certified by independent controllers. On receipt of a certificate, 50% of the amount paid on bank, and the balance by issuing shares at their market value to settle the remaining 50% balance.
The shares have a nominal value of BD5. On March 31, 2021, Bangkok received a certificate of BD2,200,000 when the fair value of the shares was BD45.
Journalize this transaction according to share based payment IFRS 2?
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
