Reference no: EM132513020

Question 1: Under IFRS 2, Share Based Payment, the value of the options that lapse after vesting shall-

a. be credited to expense during the period the option lapse.

b. be credited to income during the period that the options lapse.

c. remain in equity.

d. be converted into a liability.

Question 2: When should the compensation expense be recorded as a result of share options granted by the enterprise to its employees?

a. during the year of grant.

b. during the year that the options ultimately vest.

c. during the years when services are required to be rendered by the employees.

d. during the year when the option first becomes exercisable.

Question 3: Ownership of shares of share capital entitles the holders to all of the following rights except:

a. to elect the board of directors of the corporation.

b. to share in the profits of the corporation.

c. to purchase new shares of stock when they are offered for sale.

d. to participate in the daily operations of the corporation.