(a) Leigh, a public limited company, purchased the whole of the share capital of Hash, a limited company, on 1 June 20X6. The whole of the share capital of Hash was formerly owned by the five directors of Hash and under the terms of the purchase agreement, the five directors were to receive a total of three million ordinary shares of $1 of Leigh on 1 June 20X6 (market value $6 million) and a further 5,000 shares per director on 31 May 20X7, if they were still employed by Leigh on that date. All of the directors were still employed by Leigh at 31 May 20X7. Leigh granted and issued fully paid shares to its own employees on 31 May 20X7. Normally share options issued to employees would vest over a three-year period, but these shares were given as a bonus because of the company's exceptional performance over the period. The shares in Leigh had a market value of $3 million (one million ordinary shares of $1 at $3 per share) on 31 May 20X7 and an average fair value of $2.5 million (one million ordinary shares of $1 at $2.50 per share) for the year ended 31 May 20X7. It is expected that Leigh's share price will rise to $6 per share over the next three years. (b) On 31 May 20X7, Leigh purchased property, plant and equipment for $4 million. The supplier has agreed to accept payment for the property, plant and equipment either in cash or in shares. The supplier can either choose 1.5 million shares of the company to be issued in six months' time or to receive a cash payment in three months' time equivalent to the market value of 1.3 million shares. It is estimated that the share price will be $3.50 in three months' time and $4 in six months' time. Additionally, at 31 May 20X7, one of the directors recently appointed to the board has been granted the right to choose either 50,000 shares of Leigh or receive a cash payment equal to the current value of 40,000 shares at the settlement date. This right has been granted because of the performance of the director during the year and is unconditional at 31 May 20X7. The settlement date is 1 July 20X8 and the company estimates the fair value of the share alternative is $2.50 per share at 31 May 20X7. The share price of Leigh at 31 May 20X7 is $3 per share, and if the director chooses the share alternative, they must be kept for a period of four years. (c) Leigh acquired 30% of the ordinary share capital of Handy, a public limited company, on 1 April 20X6. The purchase consideration was one million ordinary shares of Leigh which had a market value of $2.50 per share at that date and the fair value of the net assets of Handy was $9 million. The retained earnings of Handy were $4 million and other reserves of Handy were $3 million at that date. Leigh appointed two directors to the Board of Handy, and it intends to hold the investment for a significant period of time. Leigh exerts significant influence over Handy. The summarized statement of financial position of Handy at 31 May 20X7 is as follows. Sm 2 3 5 10 Share capital of $1 Other reserves Retained earnings Net assets There had been no new issues of shares by Handy since the acquisition by Leigh and the estimated recoverable amount of the net assets of Handy at 31 May 20X7 was $11 million. Required Discuss with suitable computations how the above share-based transactions should be accounted for in the financial statements of Leigh for the year ended 31 May 20X7.