Question
It is stated under AASB 2 'Share based payment' that companies must value and record as an expense any options granted to employees in exchange
It is stated under AASB 2 'Share based payment' that companies must value and record as an expense any options granted to employees in exchange for their services. Previously Australian companies recorded share-based payments in the notes to the financial statements, arguing that share-based payments did not cost the company anything.
Required a) Explain the reasoning that led to the development of AASB 2 'Share based payment'.
b) Discuss briefly the possible economic implications of AASB 2.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
