Defined by IFRS 2 as a share-based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price of equity instruments of the entity or another group entity. * Q
Q: When share options issued to employees are exercised, the entity shall: a. recognize a loss for…
A: The stock options are type of equity compensation given to employees in form of stock. These stock…
Q: When a share-based payment transaction is with an employee and others providing similar services,…
A: Share-based payment means where an entity enters into an transactions with the employees and others…
Q: Q. Which of the following is within the scope of investments accounted for using the equity method…
A: Equity Method of accounting: Any entity can invest in another entity by acquiring less…
Q: Provided the specified vesting conditions, if any, are met, share-base payment arrangement is an…
A: share best payment in generally transaction in which the entity receives goods or services for…
Q: S1: In the financial settlement of a contingent consideration classified as financial liability, the…
A: A business combination occurs when an entity acquires control over an organization. It can also be…
Q: Direct cost incurred in a business combination are A. Capitalized B. Expensed C. Capitalized,…
A: Cost is the total expenditure incurred in an organisation during an accounting year. It includes…
Q: Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury…
A: IAS 32 is providing guidance on classification of financial instruments as financial liabilities and…
Q: Statement 1: In the financial settlement of a contingent consideration classified as financial…
A: The question is related to which Statement is correct.
Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…
A: Following is the answer to the given question
Q: 5. A gain or loss may arise from which of the following? a. The initial recognition of the debt and…
A: Liabilities are the obligation of the business towards third parties, or two internal employees, or…
Q: PRO Which of the 1. Financial assets in the form of investments in subsidiaries, associates and…
A: PAS 32 covers Contracts for delivery or receipt of commodity and other non financial assets that can…
Q: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…
A: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…
Q: hen an investor uses the cost method to account for investments in subsidiary, cash dividends…
A: Solution Concept Cost method to account for investments in subsidiary This method is used…
Q: Which of the following are recognized as liability? I. Cash dividends payable II. Share dividends…
A: Scrip divided is the divided payable in form of cash or shares. It gives two options to share…
Q: 1. Why do standard setters formulate rules on the measurement and recognition of share based payment…
A: We will only answer first question as it is not specified which question is to be answered. Kindly…
Q: Consider the following statements. I. In applying the Equity Method of accounting for investments in…
A: Equity method: This method is an accounting technique that a company uses to record the profits that…
Q: 1. What is an intercorporate share investments? a) Significance Influence b) Financial Assets vs…
A: Investments are the resources that the entity or individual has when capital is allocated for a…
Q: rding to AASB 132 Financial Instruments: Presentation, which of the following items would be…
A: As per AASB 132 – Financial Instruments: Presentation Financial liability is a contract that: gives…
Q: A share-based payment transaction is one in which an entity receives goods or services and pays for…
A: Share -based payment: These payments are made by the entity when the goods or services are purchased…
Q: How does a company determine whether to account for an equity investment using the fair value…
A: Financial Management: In layman’s words, financial management is the management of the finance or…
Q: Investments in equity instruments are financial assets because they are Group of answer choices…
A: Solution: As per IAS, Financial assets are those assets that is: 1. Cash 2. an equity instrument of…
Q: PROBLEM 1: MULTIPLE CHOICE 1. During the period, an entity acquires an investment. The entity has a…
A: If Investment's business model is to hold to collect and sell, then it shall be measured at fair…
Q: Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination…
A: Introduction:- The merger and purchase of several smaller enterprises into a few considerably bigger…
Q: Investors sometimes transfer assets to investee’s shareholders other than cash and investor’s stock.…
A: Acquisition Now a days in the business circle acquisition is very common in nature, the main reason…
Q: A share-based payment transaction with cash alternative whereby the right of choice of settlement is…
A: As per IFRS 2, accounting for a share-based payment is based on its mode of settlement either by…
Q: nvestments in equity instruments are financial assets because they are Group of answer choices…
A: Financial instrument: International financial reporting standard- 9 (IFRS-9) states the rules and…
Q: According to PFRS9 Financial Instruments, a financial instrument is recognized when the entity…
A: As per PFRS 9 Financial Instruments, a financial instrument is recognized when the entity becomes a…
Q: If the share-based payment transactions provide a choice whether the entity settles in cash or…
A: Answer is Option B) neither I nor II Share based payment can be settled in cash or by issuing…
Q: With regard to contracts that can be settled in either cash or shares IFRS requires
A: GAAP and IFRS are two accounting boards that ensure accounting rules, principles, standards are duly…
Q: Share dividends distributable is included in the statement of financial position O As a current…
A: Correct answer is option3# As an adjunct account to share capital
Q: ing entity remains the company's performar the parent's financia
A: To find the correct option as,
Q: S1: Current fair value of the investment adjusted for dividends received describes the amount at…
A: S1: Current fair value of the investment adjusted for dividends receiveddescribes the amount at…
Q: For cash-settled share based payment transactions, until the liability is settled, the entity is…
A: Solution: As per IFRS 2, "For cash-settled share-based payment transactions, entity should measure…
Q: Statement 1: Upon issue of share rights, the issuing corporation records the transaction by a…
A: Share rights are those rights which are being given or provided to existing shareholders of the…
Q: 1. Why do standard setters formulate rules on the measurement and recognition of share based payment…
A: Share-Based Payment:-Share-based payment is a transaction incurred when goods and services are…
Q: Based on which of the following concepts, is share capital account shown on the liability side of a…
A: Business entity concept says that both businessmen and business are separate person. Business has…
Q: 3. An appropriation of accumulated profits for possible contingencies should be a. Charged with…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: How is a noncontrolling interest in the net income of an entity reported in the income statement?
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: Which of the following items would be presented in a cash flow statement? Group of answer choices…
A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…
Q: f the share-based payment transactions provide a choice whether the entity settles in cash or ssues…
A: Sometimes companies pay either in cash or in the form of equity shares. These things are mentioned…
Q: What is the difference between equity-settled and cash-settled share-based payment transactions?
A: Shares can be defined as those units of capital which are being invested by the interested parties,…
Q: O obligations to transfer ownership shares to other entities in the future. deferred credits that…
A: Solution: Liabilities are "obligations arising from past transactions and payable in assets or…
Q: 6. What is the effect on the financial statement elements if an SME receives goods or services in an…
A: A share-based payment transaction is a transaction where a firm acquires goods and services in…
Q: Identify the most acceptable value of share capital in exchange of non-cash asset. options •Fair…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
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- 1. Why do standard setters formulate rules on the measurement and recognition of share based payment transactions? 2. What is the difference between equity-settled and cash-settled share-based payment transactions? 3. Distinguish between vesting and non-vesting conditions.A share-based payment transaction with cash alternative whereby the right of choice of settlement is retained by the entity is accounted for as equity-settled cash-settled either cash-settled or equity-settled, but not both partly cash-settled and equity-settledProvided the specified vesting conditions, if any, are met, share-base payment arrangement is an arrangement between an entity and another party that entitles the other party to receive - Cash or other assets of the entity for amounts that are based on the price (or value) or equity instruments of the entity and Equity instruments of the e -Cash or other assets of the entity for amounts that are based on the recoverable amount of the Equity Instruments of the entity -Equity Instruments of the entity equal to the monthly compensation of the employee -Equity Instruments of the entity that could be converted into based on the discretion of the employee on or before the vesting period
- For cash-settled share based payment transactions, until the liability is settled, the entity is required to re-measure the fair value of the liability at each reporting date and at the date of settlement and any changes in fair values are: a. Not recognized b. Included in earnings c. Included in accumulated profits d. Treated as a component of equityIn accordance with PFRS 2, Share-based Payment, how should an entity recognize the change in fair value of the liability in respect of a cash-settled share-based payment transaction? Group of answer choices Do not recognize in the financial statements but disclose in the notes thereto. Recognize in other comprehensive income. Recognize in the statement of changes in entity. Recognize in profit or loss.Please answer the 3 questions 1. Why do standard setters formulate rules on the measurement and recognition of share based payment transactions? 2. What is the difference between equity-settled and cash-settled share-based payment transactions? 3. Distinguish between vesting and non-vesting conditions.
- 1. Shares issued in connection with business combination are recorded at: A discount A premium Fair value Par value 2. Indirect costs related to acquisition of another entity is treated as An expense An investment account Share capital Share premium 3. The cost of registering equity securities in a business combination should be capitalized debited to share premium expensedplease explain why the option is correct and remaining incorrect Under IFRS 2, with respect to choice-of-settlement share-based payments, if it is the entity that has the right to choose between equity settlement and cash settlement, when must the entity choose the cash settlement? Group of answer choices If the entity has a present obligation to settle in cash If the supplier provides goods The entity always has the option to choose either method. If the supplier provides servicesThe cost of registering equity securities in a business combination should be capitalized debited to share premium expensed
- 1.) When share options issued to employees are exercised, the entity shall: a. recognize a loss for the unamortized balance b. make a transfer among equity components c. recognize a gain for the unamortized balance d. do nothing 2.) A share-based payment transaction with cash alternative whereby the right of choice of settlement is retained by the entity is accounted for as: a. either cash-settled or equity-settled, but not both b. equity-settled c. partly cash-settled and equity-settled d. cash-settled 3.) A share-based payment transaction with cash alternative whereby the right of choice of settlement is given to the employee is accounted for as: a. cash-settled b. either cash-settled or equity-settled, but not both c. partly cash-settled and equity-settled d. equity-settledA share-based payment transaction may be - any of the three other choices - equity-settled - cash-settled - choice between equity-settled and cash-settledQ1 According to IAS 28, Investments in Associates and Joint Ventures, an investment classified as a joint venture should be equity accounted in the consolidated financial statements of the investor company. Which statement below can be used to describe the Equity accounting method? Select one: a. It is an accounting method whereby an investment is initially recorded at cost and is subsequently adjusted for post-acquisition changes in the investor’s share of the net assets of the investee. b. It is an accounting method whereby an investment is initially recorded at cost and is subsequently adjusted for amortization over an agreed period of time. c. It is an accounting method whereby an investment is initially recorded at fair value and is subsequently adjusted for post-acquisition changes in the investor’s share of the net assets of the investee. d. It is an accounting method whereby an investment is initially recorded at fair value and is subsequently adjusted for amortization over…