(a) On 30 April 2021, Aprina purchased property, plant and equipment for RM1 million. The supplier has agreed to accept the payment either in cash or in shares. The supplier can either choose 80,000 of the shares of the company to be issued in three months’ time or the received cash payment in 1-month time that equivalent to the market value of 75,000 shares. Aprina granted share appreciation rights (SARs) to its employees on 1 May 2019 based on ten million shares. The SARs provide employees at the date the rights are exercised with the right to receive cash equal to the appreciation in the company's share price since the grant date. The rights vested on 30 April 2021 and payment was made on schedule on 1 May 2021. The company has recognised a liability for the SARs as at 30 April 2020 based upon MFRS2 'Share-based Payment' but the liability was stated at the same amount at 30 April 2021. Fair Value of Share at RM 30 April 2019 5 30 April 2020 6 30 April 2021 8 1 May 2021 9 31 May 2021 10 30 June 2021 11 31 July 2021 12 31 August 2021 13

 Required: Discuss, with suitable calculation, how the above transactions should be accounted for in the financial statement of Aprina for the year ended 30 April 2021.

Answer rating: 100% (QA)

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