Task One
Norden Ltd grants to each of its 10 executives a choice of receiving a cash payment equivalent to 1000 shares or receiving 1200 shares. The grant is conditional on the completion of 3 years’ service with the company. If the share alternative is chosen, the
shares must be held for 2 years after vesting date. At the grant date the company’s share price is $25 per share. At the end of years 1, 2 and 3 the share price is $27, $28 and $30 respectively. The company does not expect to pay dividends in the next 3
years.
After taking into account the effects of post-vesting transfer restrictions, the company estimates that the grant-date fair value of the share alternative is $24 per share.

Requirement:
(a) Identify the type of share-based payment transaction described above.
(b) Provide all the necessary journal entries in the books of Norden Ltd in accordance with the requirement of AASB 2.

Task Two
White Cliffs Co, whose year end is 31 December, buys some goods from Rinka SA of France on 30 September 2019. The invoice value is €40,000 and is due for settlement in equal instalments on 30 November 2019 and 31 January 2020. The exchange rate
moved as follows.

€= $1

30 September 1.60
30 November 1.80
31 December 1.90
31 January 1.85

Requirement:
Provide all the necessary journal entries in the books of White Cliffs Co.

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