Get to grips with IFRS 2

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Which of the following items is not covered within IFRS 2 Share-based payment?

  2. What value should be applied to share-based payment transactions with third parties?

  3. What value should be applied to equity-settled share-based payment schemes?

  4. What value should be applied to cash-settled share-based payment schemes?

  5. How should a bonus paid to employees based on the price of an entities shares be accounted for under IFRS 2 Share-based payment?

  6. Which of the following is not a criticism of the grant date fair value model?

  7. Which of the following represents a reason for the current usage of the grant date fair value model?

  8. Which, if any, of the following statements is correct? Statement 1 - The grant date fair value model will produce figures with greater volatility than the reporting date fair value model, or Statement 2 - The grant date fair value model is an approximation of the value of the service received from employees rather than the value of the option to be given

  9. What would the cumulative expense for the following equity-settled share option issued on 1 January 20X1 and vesting on 31 December 20X2 be over the life of the option? Fair value 1 January 20X1 = $600, Fair value 31 December 20X1 = $800, Fair value 31 December 20X2 = $900

  10. If the service date approach, adapted from IAS 19 Employee Benefits, were adopted, would the cumulative expense for the following equity-settled share option issued on 1 January 20X1 and vesting on 31 December 20X2 be over the life of the option? Fair value 1 January 20X1 = $600, Fair value 31 December 20X1 = $800, Fair value 31 December 20X2 = $900