1. Entities often sell goods or provide services in exchange for equity instruments issued by the purchaser of the goods or services. From the standpoint of the entity granting the equity instruments (the purchaser or grantor), appropriate accounting guidance for those transactions exists in Statement 123 and Issue No. 96-18, "Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services. " Paragraph 8 of Statement 123 states that those transactions should be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Issue 96-18 addresses the measurement date from the standpoint of the grantor in those transactions. 2. While certain of those transactions that involve the contemporaneous exchange of equity instruments for goods or services do not create practice issues, others are more Copyright © 2000, Financial Accounting Standards Board Not for redistribution Page 1complex in that the exchange spans several periods and the issuance of the equit
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