A share-based payment transaction in which the entity

Reference no: EM13391352

1. In a share based payment transaction where the entity has settlement choice:

a. if a present obligation does not exist, the entity has a choice of classification as an equity or cash settled share based payment transaction.
b. the entity has a present obligation to settle in cash where it has a past practice or stated policy of settling in cash.
c. the entity must settle in equity unless there is no commercial substance to the transaction.
d. if an entity elects to settle in cash the settlement is accounted for as an expense.

2. A share-based payment transaction in which the entity acquires goods or services by incurring liabilities to the supplier for amounts that are based on the value of the entity's shares or other equity instruments of the entity is classified as

a. an equity-settled share-based payment transaction
b. a cash-settled share-based payment transaction
c. a liability-settled share-based payment transaction
d. an "other" share-based payment transaction

3. Which of the following is not within the scope of IFRS 2 Share-based Payment?

a. Transactions in which the entity receives or acquires goods or services as part of the net assets acquired in a business combination to which IFRS 3 Business Combinations applies.
b. Equity instruments granted to employees of the acquiree in a business combination in their capacity as an employee.
c. Cancellation, replacement or other modification of share-based payment arrangements because of a business combination.
d. Cancellation, replacement or other modification of share-based payment arrangements because of other equity restructuring.

4. Which of the following statements is correct regarding modifications to the terms and conditions on which equity instruments were granted as part of an employee share scheme?

a. a reduction in the exercise price of options will reduce the fair value of the share options
b. a reduction in a performance hurdle relating to profitability targets will reduce the fair value of the options
c. a shortening of the vesting period will increase the fair value of the share options
d. an increase in the number of equity instruments granted is not an example of a modification

Reference no: EM13391352

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