Reference no: EM132894153
Problem 1: 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 acquires 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.
Problem 2: Which of the following is 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. Transaction in which the entity receives or acquired goods or services under a contract which is within the scope of IFRS 139 Financial Instruments: Recognition & Measurement.
C. Transactions with employees in the employee?s capacity as a holder of equity instruments of the entity.
D. Cancellation, replacement or modification of share-based payments arising because of a business combination or restructuring.
Problem 3: Reload features are accounted for as follows:
A. included in the fair value of the initial options granted at measurement date
B. separately from the initial options granted
C. as a market condition
D. as a modification to the initial terms and conditions of the initial options granted
Problem 4: Which of the following statements in relation to modifications to the terms and conditions on which equity instruments were granted as part of an employee share scheme is correct?
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