A contractor has been appointed to complete alterations to buildings owned by Bangkok. The contract price is fixed at BD2,200,000. After completion of specific milestones, the work is certified by independent controllers. On receipt of a certificate, 50% of the amount paid on bank, and the balance by issuing shares at their market value to settle the remaining 50% balance. The shares have a nominal value of BD5. On March 31, 2021, Bangkok received a certificate of BD2,200,000 when the fair value of the shares was BD45. Journalize this transaction according to share based payment IFRS 2?
A contractor has been appointed to complete alterations to buildings owned by Bangkok. The contract price is fixed at BD2,200,000. After completion of specific milestones, the work is certified by independent controllers. On receipt of a certificate, 50% of the amount paid on bank, and the balance by issuing shares at their market value to settle the remaining 50% balance. The shares have a nominal value of BD5. On March 31, 2021, Bangkok received a certificate of BD2,200,000 when the fair value of the shares was BD45. Journalize this transaction according to share based payment IFRS 2?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 17E
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A contractor has been appointed to complete alterations to buildings owned by Bangkok. The contract price is fixed at BD2,200,000.
After completion of specific milestones, the work is certified by independent controllers. On receipt of a certificate, 50% of the amount paid on bank, and the balance by issuing shares at their market value to settle the remaining 50% balance.
The shares have a nominal value of BD5. On March 31, 2021, Bangkok received a certificate of BD2,200,000 when the fair value of the shares was BD45.
Journalize this transaction according to share based payment IFRS 2?
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