n 30 June 2019, Vivo Berhad granted one of its directors the right to choose either 160,000 shares or receive a cash payment equal to the current value of 100,000 shares at the settlement date on 1 July 2020. On 30 June 2019, the share price was RM 4 and the estimated fair value of the share alternative was RM 3.50 per share. The share must be kept for 2 years if the director chooses the share alternative. Besides, on 30 June 2019, the company acquired a machinery costing RM 20 million in the market. After negotiation with the supplier, the supplier agreed to accept the payment for the machinery either in cash or shares. The supplier has the option to choose either 5 million shares of the company which will be issued in six months’ time or receive cash payment equivalent to 4 million shares in three months’ time. On 30 June 2019, the share price of the company was RM 4. It is estimated that the shares price in three months’ time will be RM 5.50 per shares and will increase to RM 6 in six months’ time. Required: In accordance with MFRS 2: Share-based payment, show the journal entries of the above transactions as at 30 June 2019.
On 30 June 2019, Vivo Berhad granted one of its directors the right to choose either 160,000 shares or receive a cash payment equal to the current value of 100,000 shares at the settlement date on 1 July 2020. On 30 June 2019, the share price was RM 4 and the estimated fair value of the share alternative was RM 3.50 per share. The share must be kept for 2 years if the director chooses the share alternative. Besides, on 30 June 2019, the company acquired a machinery costing RM 20 million in the market. After negotiation with the supplier, the supplier agreed to accept the payment for the machinery either in cash or shares. The supplier has the option to choose either 5 million shares of the company which will be issued in six months’ time or receive cash payment equivalent to 4 million shares in three months’ time. On 30 June 2019, the share price of the company was RM 4. It is estimated that the shares price in three months’ time will be RM 5.50 per shares and will increase to RM 6 in six months’ time.
Required:
In accordance with MFRS 2: Share-based payment, show the
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