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WorksheetsACCTG 23 Final Quiz
Total questions: 20
Worksheet time: 20mins
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
Many shares and most share options are not traded in an active market. Therefore, it is often difficult to arrive at a fair value of the equity instrument being issued. Which of the following option valuation techniques should not be used as a measure of the fair value in the first instance?
Black-Scholes model
Binomial model
Monte-Carlo model
Intrinsic value
The entity has issued a range of share options to employees. What type of share-based payment transaction does this represent?
asset settled share-based payment transaction
equity settled share-based payment transaction
cast settled share-based payment transaction
liability settled share-based payment transaction
How is compensation expense measured for equity-settled share-based payments?
use the normal hourly rate of the employees
measure the intrinsic value of options as the difference between market price and exercise price at the measurement date
measure the fair value of options using an option-pricing model
measure the difference between the market price and the fair value of the options.
In accounting for share-based compensation, what interest rate is used to discount both the exercise price of the option and the future dividend stream?
the entity's known incremental borrowing rate
the current market rate that the entities in that particular industry use to discount cash flows
the risk-free interest rate
any rate that entities can justify as being reasonable
A cash settled share-based payment transaction will increase which of the following?
a current asset
a non-current asset
equity
liability
How should an entity recognized the change in the fair value of the liability in respect of a cash settled share-based payment transaction?
Should not recognize in the financial statements but disclose in the notes
should recognize in the statement of changes in equity
should recognize in other comprehensive income
should recognize in profit or loss
Compensation cost for share based payment to employees that is classified as a liability is measured at
the change in fair value of the instrument for each reporting period
the total fair value at the grant date
the present value of cash payments due over the life of the grant
the actual cash outlay for the period
These are transactions in which the entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price of the entity's shares and other equity instruments
equity instruments
cash payment transactions
purchase transactions
cash settled share-based payment transactions
For cash settled share base-payment transactions, an entity shall measure the goods and services received and the liability incurred at
fair value of the goods and services received
fair value of the liability
either the fair value of the goods or services received or the fair value of the liability
neither the fair value of the goods or services received nor the fair value of the liability
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
a compound financial instrument
en equity instrument
a liability instrument
Either an equity instrument or a liability instrument but not both
