Financial Accounting: Share-based Payment, Consolidation, Business Combination, Lease and Financial Instruments

Running head: FINANCIAL ACCOUNTING
Financial Accounting
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1FINANCIAL ACCOUNTING
Table of Contents
Discussion on Financial and Non-Financial Impacts.................................................................2
Financial Aspects...................................................................................................................2
Share-based Payment.........................................................................................................2
Accounting for Consolidation............................................................................................4
Business Combination........................................................................................................5
Lease..................................................................................................................................5
Financial Instruments.........................................................................................................6
Non-Financial Aspects...........................................................................................................6
ESG Reporting...................................................................................................................6
References..................................................................................................................................7

2FINANCIAL ACCOUNTING
Discussion on Financial and Non-Financial Impacts
Financial Aspects
Share-based Payment
Share-based payment is considered as a transaction in which a business entity receives
goods or services either as the equity instrument consideration or incurring liabilities for the
amounts on the basis of the share price of the entity or other equity instrument (Voulgaris,
Stathopoulos and Walker 2014). At the same time, share based payments are considered as an
effective technique to reward the organizational employees for meeting certain specified
targets. In Australia, the presence of NZ IFRS 2 can be seen that provide the companies with
the necessary accounting standards to deal with the share based payments. As per this
accounting standard, when an entity undertakes any share-based payment, it is one of the
requirements that the management must disclose the financial position of the business in
association with the expenses specifically related to the transaction.
As per the requirements of the IFRS standard of New Zealand, it is needed for a
business to take into consideration the recognition of share-based payment related operations
in the books of accounts that includes the employee’s and other related party’s transactions
that need to be settled, equity instruments and other assets of the employee. This standard
does not have any expectation, other than for the treatments to which other standards are
applicable. As per NZ IFRS 2, there are certain principles which needs to be followed for
measurement and certain precise requirements in case of share based payments of three
different types of transactions (Roberts, Zaslavsky and McWilliams 2018). They are as
follows:
Equity-settled share-based payment transaction – Under this specific share-based
payment, the entities receive either services or goods as the contemplation in relation to