Business Studies, asked by greattask4008, 1 year ago

For cash settled awards the basis of measurement for non employee is

Answers

Answered by jyothirmaibasa62
5
For transactions with parties other than employees, in which the fair value of the goods or services received is measured directly, the entity shall measure the equity component of the compound financial instrument as the difference between the fair value of the goods or services received and the fair value of the debt ...
Answered by mindfulmaisel
0

For cash-settled awards, the basis of measurement for non-employee is measured on the basis of the ‘fair value’ of the ‘consideration received’ or the fair value of the ‘equity instruments’ issued, depending on whichever is more reliably measured.

Explanation:

  • The cash-settled payment is the expense or a form of transactions which is done by making payment in cash by the company.  
  • It entitles the employees to a certain amount of payment in cash that is equal to the increase in the price of the share for a given number of the company's shares over a ‘certain period of time’.
Similar questions