Reference no: EM132785682

Problem 1: For a share-based payment transaction in which the terms of the arrangement provide an entity with the choice of whether to settle in cash or by issuing equity instruments, the entity shall determine whether it has ____________ to settle in cash and account for the share-based payment transaction accordingly.

Group of answer choices

Option 1: A present obligation

Option 2: A deferred liability

Option 3: A future obligation

Option 4: A contingent liability

Problem 2: Held for trading is a financial liability that:

Group of answer choices

Option 1: On initial recognition is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking

Option 2: Any of the choices

Option 3: Is a derivative, except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument.

Option 4: Is incurred principally for the purpose repurchasing it in the near term.