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15 Cards in this Set
- Front
- Back
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b. Equity-settled share-based payment transaction |
Share options are what type of share-based payment transaction? a. Asset-settled share-based payment transaction b. Equity-settled share-based payment transaction c. Cash-settled share-based payment transaction d. Liability-settled share-based payment transaction |
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a. Fair value of share options on date of grant |
The total compensation expense in a share option plan is measured at a. Fair value of share options on date of grant b. Fair value of share options on date of exercise c. Intrinsic value of share options on date of grant d. Intrinsic value of share options on date of exercise |
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b. Intrinsic value |
It is the difference between the fair value of the shares to which the counterparty has the right to subscribe and the price the counterparty is required to pay for those shares.
a. Fair value b. Intrinsic value c. Market value d. Book value |
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a. Date of grant |
The date on which total compensation expense is computed in a share option plan is the
a. Date of grant b. Date of exercise c. Date when the market price coincides with the option price d. Date when the market price exceeds the option price |
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d. Whether the share options are issued in lieu of salary |
When issuing share options to employees, which of the following factors is most relevant in determining the accounting treatment? a. The par value of the shares issued b. The market value of the shares issued c. The authorized number of shares d. Whether the share options are issued in lieu of salary |
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b. Grant date |
For transactions with employees, the fair value of the share options is measured on a. Exercise date b. Grant date c. End of reporting period d. Beginning of the year of grant |
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a. Share option |
It is a contract that gives the employees 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. a. Share option b. Share warrant c. Share appreciation right d. Share split |
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c. In circumstances when the options are granted for prior service and the options are immediately exercisable. |
In what circumstances is compensation expense immediately recognized under a share option plan? a. In all circumstances. b. In circumstances when the options are exercisable within two years for services rendered over the next two years. c. In circumstances when the options are granted for prior service and the options are immediately exercisable. d. In no circumstances is compensation expense immediately recognized. |
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c. Allocated to the periods benefited by the employee’s required service |
Compensation expense resulting from a share option plan is generally a. Recognized in the period of exercise b. Recognized in the period of the grant c. Allocated to the periods benefited by the employee’s required service d. Allocated over the periods of the employee’s service life to retirement |
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d. Accounted for as repurchase of equity interest and any excess payment over the balance of share options outstanding shall be recognized as expense. |
If there is an acceleration of vesting, any payment made to the employees on the cancelation or settlement of the grant shall be
a. Accounted for as repurchase of equity interets b. Recognized in retained earnings c. Recognized as component of other comprehensive income d. Accounted for as repurchase of equity interest and any excess payment over the balance of share options outstanding shall be recognized as expense |
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c. Cash settled share-based payment transaction |
Share appreciation rights are what type of share-based payment transaction? a. Asset settled share-based payment transaction b. Liability settled share-based payment transaction c. Cash settled share-based payment transaction d. Equity settled share-based payment transaction |
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d. A liability |
A cash settled share-based payment transaction increases which of the following? a. A current asset b. A noncurrent asset c. Equity d. A liability |
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c. The settlement date |
What is the measurement date for a share-based payment to employees that is classified as a liability? a. The service inception date b. The grant date c. The settlement date d. The end of reporting period |
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d. Date of exercise |
For share appreciation rights, the measurement date for computing compensation is the a. Date the rights mature b. Date the share reaches a predetermined amount c. Date of grant d. Date of exercise |
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c. Allocated over the service period of employees |
In accounting for share appreciation rights, compensation expense is generally
a. Not recognized b. Recognized on the date of grant c. Allocated over the service period of employees d. Recognized on the date of exercise |
