Question: On January 1 2011 Pacer Ltd paid 1 000 for the
On January 1, 2011, Pacer Ltd. paid $1,000 for the option to buy 5,000 of its common shares for $25 each. The contract stipulates that it may only be settled by exercising the option and buying the shares. How should this be accounted for in the financial statements of Pacer Ltd.? Assume that Pacer Ltd. complies with IFRS.
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