Reference no: EM132808786

Problem 1: If share-based payment transaction provides that the employees have the right to choose the settlement whether in cash or shares, the entity is deemed to have issued

Group of answer choices

Option 1: an equity instrument.

Option 2: a liability instrument.

Option 3: a compound financial instrument.

Option 4: either an equity instrument or a liability instrument but not both.

Problem 2: How should cumulative preference dividends in arrears be reported in the statement of financial position?

Group of answer choices

Option 1: Increase in current liabilities for the amount expected to be declared within the year or operating cycle, and increase in noncurrent liabilities for the balance.

Option 2: Increase in shareholders' equity.

Option 3: Increase in current liabilities.

Option 4: Note disclosure.