SHARE-BASED PAYMENT Definition

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SHARE-BASED PAYMENT is a transaction in which the entity receives or acquires goods or services either as consideration for its equity instruments or by incurring liabilities for amounts based on the price of the entity's shares or other equity instruments of the entity. The accounting requirements for the share-based payment depend on how the transaction will be settled, that is, by the issuance of (a) equity, (b) cash, or (c) equity or cash.

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ALLOWANCE, within Sales, is a concession granted to customers for unsatisfactory goods or services. Reduces sales because a portion of the sale has not been earned.

TRANSPOSE is to change the relative place or normal order, e.g., to alter the sequence of numbers to change the amount; often accidentally.

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