Cabramurra Ltd, a listed company, organises major sporting events. It acquires crowd control equipment in return for a liability for an amount based on the price of 1000 of its own shares. Required Is this a share-based payment transaction? Should Cabramurra Ltd recognise the acquisition cost as an asset or an expense? Explain.

Cabramurra Ltd, a listed company, organises major sporting events. It acquires crowd control equipment in return for a liability for an amount based on the price of 1000 of its own shares. Required Is this a share-based payment transaction? Should Cabramurra Ltd recognise the acquisition cost as an asset or an expense? Explain.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cabramurra Ltd, a listed company, organises major sporting events. It acquires crowd control equipment in return for a liability for an amount based on the price of 1000 of its own shares.

Required

Is this a share-based payment transaction? Should Cabramurra Ltd recognise the acquisition cost as an asset or an expense? Explain.

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