ACCTG 23 Final Quiz

These are transactions in which the entity receives goods or services as consideration for equity instruments of the entity, including shares and share options

• Equity settled share-based payment transactions

• Cash settled share-based payment transactions

• Equity payment transactions

• Cash payment transactions

It is the difference between the fair value of the shares to which the counterparty has the right to subscribe and pay the price the counterparty is required to pay for those shares.

• fair value

• intrinsic value

• market value

• book value

It is the date on which the entity and another party agree to a share-based payment arrangement, being when the entity and the courter party have a shared understanding of the terms and conditions of the arrangement

• grant date

• measurement date

• exercise date

• end of the reporting period

what is the date on which the fair value of the equity instrument granted is measured?

• measurement date

• grant date

• exercise date

• end of the reporting period

For transactions with employees and others providing similar services, the fair value of the equity instrument granted is measured on

• exercise date

• grant date

• end of the reporting period

• beginning of the year grant

It is a contract that gives the holder the right, but not the obligation, to subscribe to the entity's shares at a fixed or determinable price for a specified period of time

• Share option

• Share warrant

• Share appreciation right

• Share split

If the share options do not vest until the employee completes a specified service period, the compensation is

• not recognized as expense

• recognized as an expense immediately

• recognized as expense over the service or vesting period

• recognizzed as an expense over a reasonable period not exceeding 10 years

In what circumstances is compensation expense immediately recognized under a share option plan?

• in all circumstances

• in circumstances when the options are exercisable within two years for services rendered over the next two years

• in circumstances when the options are granted for prior to service and the options are immediately exercisable

• in no circumstances is compensation expense immediately recognized

Which of the following transactions involving the issuance of shares does not come within the definition of a "share-based" payment under PFRS 2?

• employee share purchase plan

• employee share option plan

• share-based payment relating to an acquisition of a subsidiary

• share appreciation rights

Which of the following statements is true regarding the requirements of PFRS 2?

• private entities are exempt

• "small entities" are exempt

• subsidiaries using their parent entity's shares as consideration for goods and services are exempt

• there are no exemptions from PFRS 2